Watchdog finds deficiencies but no Fed misconduct in Powell-era renovation project
The watchdog said poor oversight and contract management drove a roughly $1 billion overrun, and the Fed agreed to seven corrective steps.
- 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.
104 Articles
104 Articles
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.
The U.S. Federal Reserve General Inspection did not find "reasonable grounds" for criminal proceedings against the former president of the institution, according to a report published on Wednesday. The U.S. President believes that the one who is today governor of the Fed should be "forced to resign" or "prosecuted".
Review of Fed Renovation Finds Management Failures, No Grounds for Criminal Referral
Federal Reserve Chair Jerome Powell speaks during a news conference following the Federal Open Markets Committee meeting at the Federal Reserve in Washington on April 29, 2026. (Anna Moneymaker/Getty Images)
‘This is Jerome Powell’s fault’: Watchdog says Fed’s $2.5 billion boondoggle renovation was mismanaged, not criminal * WorldNetDaily * by Cristina Laila, The Gateway Pundit
Trump wants former chairman sued for corruption or incompetence and does NOT want his name on building
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