Chairman Warsh Partners with GSA Following Explosive OIG Report Finding Federal Reserve Renovation Costs Rose from $1.3B to $2.4B Under Previous Chairman Powell’s Leadership 

WASHINGTON, D.C. — Yesterday, Federal Reserve Board (the Fed) Chairman Kevin Warsh announced that the U.S. General Services Administration (GSA) will serve as Project Executive for the central bank’s renovation of their headquarters located in the Eccles and East Buildings. In a letter to Inspector General Horowitz [PDF – 798 KB], Warsh stated he was enlisting GSA to work with the Fed “in the task of finally bringing the renovations to a speedy and successful completion.”

“GSA fully supports Chairman Kevin Warsh’s efforts to bring greater accountability, cost discipline, and effective project management to major renovation work across Federal Reserve facilities,” said GSA Administrator Edward C. Forst. “As the federal government’s primary real estate and building management agency, GSA will work closely with the Chairman and bring its expertise in construction, project management, and federal real estate to get these projects back on track. Together, we will focus on delivering better value for taxpayers and ensuring the Federal Reserve’s facilities are positioned to better serve the American people.”

The move follows a highly critical report by the Office of Inspector General (OIG), which found serious mismanagement of the Federal Reserve’s renovation of the Eccles and East Buildings under former Federal Reserve Chairman Jerome Powell. According to the OIG, project costs ballooned from an initial estimate of $1.3 billion in 2020 to $2.4 billion by December 2024 during Chairman Powell’s tenure, with uncertainty remaining over how much further costs have climbed since. The report also found that the Federal Reserve failed to establish a guaranteed maximum price for the project.

Click here for news release from GSA