A federal watchdog report released Wednesday sharply criticized the Federal Reserve for mismanaging its extensive renovation of the agency’s headquarters, a project that has cost taxpayers approximately $2.5 billion. Despite the report’s harsh assessment of the renovation’s execution, it cleared former Fed Chair Jerome Powell of any criminal wrongdoing.

The 120-page review by the Federal Reserve’s inspector general was prompted by last year’s revelations that the renovation was proceeding amid significant budget overruns. The report condemned the Fed’s adoption of a “pay-as-you-go” financing approach, which allowed costs to escalate unchecked from the original $921 million estimate to more than twice that amount. Investigators highlighted several key errors contributing to the overruns, including a mid-project decision to abandon open workspaces in favor of private offices. This change froze design progress for 21 months, exacerbating delays and expenses.

The report detailed an increase of nearly $500 million in mechanical and plumbing costs—expenditures that were approved without the required three competitive bids from contractors, raising concerns about oversight and fiscal discipline. Additionally, the Fed did not produce a comprehensive cost estimate until January 2026, three and a half years after construction began and after the board had already committed about $2 billion to the project.

While the report did not find evidence warranting criminal charges against Powell, it did prompt criticism from former President Donald Trump. In a post on his social media platform, Trump called on Attorney General Todd Blanche to review the findings and urged Powell to resign, arguing he was unfit to lead both the renovation and the Fed’s interest rate policies.

The Federal Reserve typically returns excess profits to the U.S. Treasury, but the inflated renovation expenses have diminished these payments, effectively transferring financial burden to American taxpayers. The inspector general’s review concluded that the Fed “had not successfully managed and executed” the renovation and that the lack of an established spending limit hindered effective budget control.

Early designs for the renovation had included luxury features such as marble interiors and a rooftop garden terrace. However, the report noted that these elements did not significantly contribute to the cost increase. Other costly design features, including water installations, were scaled back or removed last year following scrutiny from Congress and media outlets.

The Federal Reserve declined to comment on the report.