Published • loading... • Updated
Watchdog finds deficiencies but no Fed misconduct in Powell-era renovation project
The watchdog cited seven recommendations and said the Fed board will back an independent audit and a General Services Administration takeover.
- On Wednesday, Federal Reserve Inspector General Michael Horowitz released a 120-page report finding no criminal or administrative misconduct in the headquarters renovation, though concluding the Board "had not effectively executed" its construction contract.
- Construction costs for the Eccles Federal Reserve Building ballooned to roughly $2.4 billion from a $921 million estimate in 2020, driven by systemic project management failures including lack of price caps and insufficient competitive bidding.
- President Donald Trump frequently criticized the project as "disgraceful," citing luxury upgrades; however, Inspector General Horowitz found that marble finishes and private elevators "did not materially contribute" to the budget overruns.
- Fed Chair Kevin Warsh announced the General Services Administration will assume project management to "verify accuracy and compliance," while the central bank will hire an independent auditor to recover costs for unperformed work.
- The report effectively closes a contentious chapter involving legal attacks on former Chair Jerome Powell, who remains on the Board of Governors, as criminal probes were dismissed in April after courts found the subpoenas were a "pretext.
Insights by Ground AI
Podcasts & Opinions
116 Articles
116 Articles
Watchdog: Mistakes, but No Crimes in Fed Renovation
The Federal Reserve's internal watchdog said Wednesday that the central bank has vastly mismanaged an extensive building renovation project but did not find any criminal violations, as alleged by Trump administration advocates. A variety of misssteps by the Fed's Board of Governors and staff inflated the cost of the $2....
·Miami, United States
Read Full Article
Fed Chair Warsh Moves to Remedy Serious Oversight Failures Found in Construction Report
Federal Reserve Chairman Kevin Warsh has appointed the General Services Administration to oversee completion of the central bank’s headquarters renovation, ordering an independent cost audit after an inspector general’s investigation documented extensive failures in management and senior oversight.
·Los Angeles, United States
Read Full ArticleCoverage Details
Total News Sources116
Leaning Left28Leaning Right24Center34Last UpdatedBias Distribution39% Center
Bias Distribution
- 39% of the sources are Center
39% Center
L 33%
C 39%
R 28%
Factuality
To view factuality data please Upgrade to Premium
