Fed Renovation Project Faces Criticism but No Criminal Charges, Report Says

Federal Reserve's renovation project criticized for mismanagement but no criminal violations found, according to watchdog report.

Editorial Desk

September 30, 2026 One Min Read

POLICY WIRE — Washington, United States — A federal watchdog has concluded that the Federal Reserve’s major building renovation project was poorly managed, though no criminal misconduct was uncovered, according to a newly released report.

The inspector general’s 120-page document highlighted significant lapses in cost control and project oversight during the $2.4 billion renovation of two historic buildings on the National Mall. The report noted that the Fed failed to establish a comprehensive budget at the project’s outset, which contributed to rising costs as inflation took hold after construction began in 2022.

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Former Fed Chair Jerome Powell had requested the review last year, and the findings came amid heightened scrutiny from the Trump administration, which had previously accused the central bank of resisting pressure to lower interest rates. Despite these tensions, the report found no evidence of criminal wrongdoing, stating that no reasonable grounds existed for referring the matter to the U.S. Attorney General.

Reporting by Policy-Wire (PW)

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