Blasting Fed's Renovation Costs: Elon Musk's Power Move with DOGE
Elon Musk suggests that Dogecoin (DOGE) could benefit from considering the expenses of the Federal Reserve.
Elon Musk, the enigmatic genius behind Tesla and SpaceX, took aim at the Federal Reserve this week, suggesting a probe into the central bank's headquarters renovation expenses.
As the figurehead of the Department of Government Efficiency (DOGE) since its inception, Musk, who recently announced he'd be stepping back to focus on Tesla, broached the topic during a White House press gathering on Wednesday.
"Looking at the Fed's spending two and a half billion dollars on their interior designer, I think that's a real mind-boggler," Musk commented, adding, "That's an eyebrow-raiser."
Remember, DOGE's mission is to ensure transparency and accountability across all government entities. So, Musk's comments are a hint towards the possible extension of DOGE's cost-cutting mandate to scrutinize the Fed's spending practices.
ICE CREAM FROM TRUMP AND A 'COMICALLY TINY OFFICE': ELON MUSK'S THREE-MONTH DOGE JOURNEY
As Musk prepares to retreat from the DOGE stage, it's worth looking back at his whirlwind three-month stint, during which he ruffled feathers across government bodies.
AUDIT ON THE TABLE: ELON MUSK'S WARNING TO THE FEDERAL RESERVE
The cost of the Fed's headquarters renovation soared to $2.5 billion from 2021, with inflation reaching a 40-year high at the time, according to Fed data. The increase was largely attributed to rising material and labor costs, as well as construction delays.
Given these figures, it's no surprise that Musk questioned the Fed's spending, particularly as he's been pushing for DOGE to make government entities fully transparent.
**MUSK'S STAFFING CRITICISM AND POWELL’S REACTION
Musk's scrutiny didn't stop at the Fed's spending, as he's previously referred to the Federal Reserve as "absurdly overstaffed"[4], a claim that Federal Reserve Chair Jerome Powell contradicted during a February press conference.
"We might be overworked, but we're not overstaffed," Powell said in response to Musk's claims.
And in February congressional testimony, Powell flat-out rejected the idea that the Fed is overstaffed, stating, "Everybody at the Fed works really hard."
Nevertheless, these exchanges underscore the tension between Musk's focus on efficiency and the Fed's operational needs.
So, brace yourselves for a potential showdown between Musk and the Federal Reserve. While no official DOGE audit has been announced, Musk's comments signal a growing disagreement with the Fed's practices and independence[1][4][5].
- Elon Musk, known for his businesses in technology and space travel, has warned the Federal Reserve about their expenses, specifically a $2.5 billion renovation of their headquarters, which he finds questionable given the current inflation.
- As the head of the Department of Government Efficiency (DOGE), Musk's comments imply a possible expansion of DOGE's mandate to scrutinize the Fed's spending.
- The cost of the Fed's renovation soared during a time when inflation reached a 40-year high, with most of the increase attributed to rising material and labor costs, as well as construction delays.
- Previously, Musk has criticized the Federal Reserve, referring to it as "absurdly overstaffed," a claim that was contradicted by Federal Reserve Chair Jerome Powell during a February press conference.
- In a potential showdown, Musk's focus on efficiency and transparency may clash with the operational needs and independence of the Federal Reserve.
- The general news and business communities are watching closely as the tension between Musk and the Federal Reserve unfolds, with no official audit announced thus far.
