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.
126 Articles
126 Articles
InsideNoVA.com
The Center SquareFed awarded $2B on renovation without a guaranteed price
(The Center Square) – The Federal Reserve awarded more than $2 billion in construction work on its headquarters renovation without establishing a guaranteed maximum price for the project, the central bank's inspector general found.
Hawaii Tribune-Herald
Watchdog finds no Fed misconduct in renovation; Trump calls for Powell’s resignation
WASHINGTON — The Federal Reserve’s Inspector General on Wednesday said it found no grounds for a criminal referral or evidence of administrative misconduct tied to cost overruns in a U.S. central bank renovation project.
Fed Inspector General Finds Serious Renovation Mismanagement But Clears Powell Of Criminal Wrongdoing
The Federal Reserve’s inspector general has concluded that the central bank failed to effectively oversee a massive headquarters renovation, allowing costs to more than double without ever establishing a firm price ceiling. The watchdog’s report, released Wednesday, identified a series of management missteps that contributed to a roughly $1 billion cost overrun on the renovation […]
Coverage Details
Bias Distribution
- 41% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
