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Watchdog finds deficiencies but no Fed misconduct in Powell-era renovation project
- 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.
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The Inspector General has not discovered any evidence of possible violations of the building conversion, but other shortcomings have been identified. Senator Elizabeth Warren speaks of a witch hunt.
·Düsseldorf, Germany
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Watchdog finds no criminal misconduct in $2.5 billion Fed ...
·New York, United States
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Total News Sources64
Leaning Left18Leaning Right9Center24Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 35%
C 47%
R 18%
Factuality
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