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.
\n\nThe watchdog found that the Fed repeatedly departed from contractual cost controls, allowed major spending decisions to proceed without requiring escalation to senior leadership, and reported the project as on track against budget and schedule targets that were repeatedly revised.
\n\nWarsh’s response establishes new executive responsibility for the project and directs reviews of spending and contractor performance, including potential recovery of payments for services not delivered.
\n\n“Effective immediately, GSA will serve as the Project Executive, reporting to the Board of Governors and to me as its Chairman,” Warsh wrote in a September 29 letter accompanying the report released Wednesday.
\n\nThe inspector general found no reasonable grounds to believe federal criminal law had been violated and no violations of Board policy warranting an administrative misconduct finding. Its findings nevertheless document substantial shortcomings in the oversight framework operating during former Chairman Jerome Powell’s tenure.
\n\nAbout $2 billion of the $2.1 billion in construction work awarded through December 2025, or 95 percent, fell outside the…
Original source: https://www.breitbart.com/economy/
