Billionaire Elon Musk called for the Department of Government Efficiency (DOGE) to investigate the Federal Reserve’s $2.5 billion headquarters renovation spending, escalating his scrutiny of the central bank as he prepares to reduce his role in the government efficiency initiative.
What Happened: “Since at the end of the day, this is all taxpayer money, I think we certainly — we should definitely — look to see if, indeed, the Federal Reserve is spending two and a half billion dollars on their interior designer,” Musk said at the White House on Wednesday, reported Fox News. “That’s an eyebrow-raiser,” Musk added.
The Tesla Inc. TSLA CEO’s comments target the Fed’s headquarters renovation project, which began in 2021. In November 2022, the central bank disclosed that renovation costs had ballooned to $2.5 billion, citing “significant increases in raw materials costs which far exceed standard cost escalations, higher labor costs, and changes in construction schedule expectations.”
Why It Matters: Musk’s remarks continue his pattern of criticizing the Federal Reserve. Earlier this year, he said, “All aspects of the government must be fully transparent and accountable to the people. No exceptions, including, if not especially, the Federal Reserve.” He previously characterized the central bank as “absurdly overstaffed.”
Federal Reserve Chair Jerome Powell has pushed back against such criticism, stating in a February press conference that the Fed runs a “very careful budget process” and is “fully aware” of its responsibility to the public. Powell has consistently warned that efforts to audit the central bank could undermine its independence and ability to make unbiased monetary policy decisions.
Musk announced last week that he will be reducing his involvement with the DOGE leadership role to focus more on his CEO duties at Tesla.
During Tesla’s first-quarter earnings call, he stated that the “large slug of work necessary to get the DOGE team in place and working in the government to get the financial house in order is mostly done,” but added he would continue spending “a day or two per week” on government matters throughout President Donald Trump‘s term.
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