Fed watchdog finds no misconduct in renovation probe

The Federal Reserve’s inspector general found no reasonable grounds for a criminal referral and no administrative misconduct in the renovation of two central-bank buildings in Washington, while documenting significant shortcomings in how the Fed managed the project. A report released Wednesday said the Federal Reserve Board had not effectively managed and executed the construction contract and had repeatedly deviated from its cost-management provisions. The inspector general’s office issued seven recommendations to address the management concerns. The findings distinguish the absence of identified criminal or administrative misconduct from the report’s criticism of project oversight. The renovation’s reported cost is about $2.4 billion, although accounts cite differing budget baselines and estimates. One account put the project’s budget at $1.3 billion in 2020; another reported an estimate of $1.9 billion in 2023 and a cost estimate of $2.5 billion by 2025. Those figures reflect different points in the project and are not directly comparable.