The president expressed "extreme concern" over Powell's behavior of "squandering taxpayer funds and extensive renovations."
Written by: C Labs
Regarding the recent rumors of Powell's resignation, it is said that the pressure for him to resign does not stem from any high-profile economic policies, but rather from the renovation issues of the Federal Reserve building.
Since Powell first took office in 2018, nearly 8 years have passed, and the renovations are still not completed.
The budget has skyrocketed from an initial $1.5 billion to now $2.6 billion.
And because the Federal Reserve is independent, it can approve its own expenditures, spending however it wants. Who would have thought?
Trump is indeed shrewd, seizing on this issue to claim that Powell's hands are not clean and preparing to hold him accountable.
The U.S. President's Office of Management and Budget has even prepared an official letter:
This letter from the White House states that the president is "extremely concerned" about Powell's behavior of "squandering taxpayer funds and extensive renovations."
Moreover, the project has exceeded its budget (over $700 million), including: rooftop gardens, VIP private dining rooms, luxury elevators, water features, high-end marble, etc.
On average, each employee will occupy 512 square feet of office space, far exceeding the OMB recommended standard (150 square feet), and much higher than other federal agency renovation projects.
It also pointed out that the Federal Reserve headquarters (Eccles Building) underwent a complete renovation from 1999 to 2003, and spending so much money again is too wasteful.
Many people may not have a concept of the Federal Reserve spending $2.6 billion on renovations.
It should be noted that this expenditure ranks second in the world, with only the Pentagon being more expensive!
And the Pentagon's area is several times larger than that of the Federal Reserve building.
In terms of area, the Martin Building + Eccles Building + annex expansion is about 100,000 square meters, with a renovation cost of $26,000 per square meter!
I'll share a few photos of the renovated Federal Reserve building; let's see if it's worth such a high cost.
Some may still think that even if Powell resigns, he is still a Federal Reserve governor.
However, the term for a Federal Reserve governor is 14 years, with a new one being appointed every two years.
In reality, Federal Reserve governors often resign; since 2000, there have been 23 governors, of which 15 resigned early, with an average tenure of only five to six years.
Therefore, after Trump ousts Powell, the new Federal Reserve governors are likely to undergo a significant turnover.
Trump has made it clear that interest rates should be lowered by at least three points from the current level.
Such a significant reduction in interest rates will surely trigger a global monetary expansion.
The general public probably never imagined that this monetary expansion would be triggered by this renovation. 😁
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