According to a May 1 report on the Bloomberg News website, billionaire Elon Musk said he was considering sending his government efficiency team to the Federal Reserve. Musk cited the expensive renovation project of the Federal Reserve's Washington headquarters as an example of potential government waste.

Musk told reporters at the White House on April 30: "Ultimately, it's taxpayers' money. I think we really - we absolutely should - take a look at whether the Federal Reserve has really spent $2.5 billion on their interior designers."

As of 2022, the cost of the Federal Reserve's years-long headquarters renovation project had increased to $2.5 billion. The Federal Reserve attributed this figure to the surge in inflation rates when the project began in 2021, leading to rising costs for building materials and labor.

"This is shocking," Musk said.

Reportedly, the Federal Reserve does not rely on Congressional funding to operate but funds itself through income generated from securities held on its balance sheet. However, in recent years, with the increase in interest expenses, the central bank has incurred deficits, drawing Musk's attention.

Musk suggested that the government efficiency department review the Federal Reserve. This is the latest example of Trump's attempt to exert more political control over this independent institution, which may unsettle investors who count on the Federal Reserve to control inflation.

Musk made these remarks after Trump publicly considered whether to dismiss Federal Reserve Chairman Jerome Powell.

For many years, the Federal Reserve's revenue has consistently exceeded operational expenses, and it has remitted substantial profits to the U.S. Treasury, helping to reduce the government's budget deficit. However, with the rise in interest rates, the situation reversed: the Federal Reserve incurred operational losses in 2023 and 2024 and had to stop remitting profits to the Treasury.

The Federal Reserve stated that the renovation of its headquarters would consolidate most employees into one office area, reduce rental space elsewhere, and modernize the workspace.

Original article: https://www.toutiao.com/article/7499474266347078155/

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