- Elon Musksuggested his cost-cutting government project DOGE should take a closer look at the Fed’s spending, especially the $2.5 billion it has spent to remodel its Washington, D.C., headquarters. Musk’s comments come as he is set to “significantly” cut back on his time at DOGE, in part to focus on his EV company, Tesla.
Elon Musk’s DOGE has already made major cuts to departments across the executive branch, but it could be looking at the independent Federal Reserve as its next target.
The Tesla CEO and Trump advisor said his federal cost-cutters should take a closer look at the central bank, citing the substantial cost of its Washington, D.C., headquarters renovation as a possible source of waste.
“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 to reporters at the White House, Bloomberg reported.
As of 2022, the price of the Fed’s remodel had increased to $2.5 billion from an original budget of $1.9 billion. The redesign to the Fed’s headquarters on Constitution Avenue started in 2021 and is meant to consolidate most of its staff into one space, as well as improve technology, energy efficiency, and compliance with building codes.
Still, Musk criticized the high price tag of the construction Wednesday.
“I mean, what do you get for $2.5 billion in redecorating? Must be incredible,” he said, according to CNBC.
In light of the poor performance of Tesla stock in recent months, Musk last month pledged his time at DOGE would “drop significantly” starting in May.
The Fed generally does not receive taxpayer funds as it is self-funded from the interest on securities on its balance sheet and fees from banks. For years, the Fed returned any funds it had after covering its operating costs to the Treasury, yet in recent years, the Fed has run a deficit because of increased interest payments, Bloomberg reported.
However, documents filed with the National Capital Planning Commission note the Fed’s headquarters, which houses not just staff but also important information on the banks it regulates, was in disrepair.
“While there have been regular modifications and renovations to the building over its 80-year history, many of the building systems are at the end of their useful life, and the building no longer fully serves the Board’s needs,” the documents read, according to CNBC.
Musk’s recent comments on the Fed come as Trump has escalated his rhetoric against Fed Chairman Jerome Powell and has repeatedly called for the central bank to cut interest rates.
Before clarifying he had “no intention” of firing Powell, Trump suggested he could dismiss the Fed chairman if he wanted to, and said his termination “cannot come fast enough.” On Tuesday, Trump suggested he knew more than Powell about interest rates.
“You’re not supposed to criticize the Fed,” Trump said. “You’re supposed to let him do his own thing, but I know much more than he does about interest rates.”