Cost overruns are pretty routine when it comes to Washington projects, and “underbudget” is seldom a word ever spoken. But what has gone on at the Fed with its runaway building cost escalation is fiscal malfeasance and borders on financial fraud.

The spruced up Federal Reserve’s Eccles and East buildings were supposed to cost $1.9 billion when the renovation started in 2021. Even that hefty price tag raised a lot of eyebrows in Washington.

Here we are four years later and the cost keeps escalating, now north of $2.5 billion – and this is on top of the recently completed renovation of the Fed’s Martin building, which was budgeted at $500 million and ended up topping $650 million.

As President Trump pointed out when he toured the site last month, beautifying the three-building complex now known as the Taj Majal of Constitution Avenue, will cost at least $3.15 billion.

Good going, Chairman Powell. Way to keep your eye on the ball. Trump was right when he said he could have done the remodeling for about $2.9 billion less.

Why the 30% extra cost? This new price tag, federal documents explain, “reflects significant increases in raw materials costs which far exceed standard cost escalations, higher labor costs, and changes in construction schedule expectations.”

Inflated costs of raw materials!  Gee, we wonder who caused that!