The Federal Reserve failed to use key cost controls and adequately oversee a headquarters renovation whose approved budget grew by more than $1 billion, according to an inspector general report released on Sept. 29.
The inspector general identified significant management deficiencies but found no reasonable grounds to believe that a federal criminal violation had occurred requiring referral to the attorney general. The review also found no administrative misconduct.
The construction costs for renovating the Marriner S. Eccles and 1951 Constitution Avenue buildings in Washington increased from $921 million in February 2020 to $2 billion in December 2024. The budget grew from $1.31 billion in 2020 to $2.38 billion in August 2026. Construction, originally expected to finish in the second quarter of 2024, is now scheduled to end in December 2027. …