The Federal Reserve’s Office of Inspector General said its review of the Fed’s $2.4 billion Washington headquarters renovation found no evidence of federal crimes warranting referral to the U.S. Department of Justice. The OIG cited project-management deficiencies — inadequate cost controls, oversight and governance — and said the Fed Board failed to implement effective cost caps or a clear maximum-construction-cost control mechanism. Costs rose from a 2020 budget of $1.3 billion largely due to d

The Federal Reserve’s Office of Inspector General said its review of the Fed’s $2.4 billion Washington headquarters renovation found no evidence of federal crimes warranting referral to the U.S. Department of Justice. The OIG cited project-management deficiencies — inadequate cost controls, oversight and governance — and said the Fed Board failed to implement effective cost caps or a clear maximum-construction-cost control mechanism. Costs rose from a 2020 budget of $1.3 billion largely due to design adjustments, site and construction conditions, inflation and instances of work without competitive bidding; the report said controversial design elements were not the main driver of the increase. Fed Chair Kevin Warsh said the Fed will implement OIG recommendations and hire an independent auditor to review approved project costs. The project had drawn criticism from Trump and Republican lawmakers over perceived overspending.