The Federal Reserve’s inspector general determined that management and oversight failures contributed to major cost overruns in the central bank’s Washington headquarters renovation, but found no grounds for a criminal referral. The project’s cost ballooned by roughly one billion dollars from initial estimates, reaching 2.5 billion dollars in the Fed’s 2025 budget, about 700 million dollars more than earlier projections. These findings are expected to defuse one line of attack against former Fed Chair Jerome Powell, whom President Donald Trump and other critics accused of mismanaging the project and misleading Congress. Powell remains a governor at the Fed until January 2028, while new chair Kevin Warsh stated he plans to conduct a full audit of the renovation and has asked the General Services Administration to oversee the project going forward.
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