Original Title: "A Global Monetary Easing Triggered by a Renovation"
Original Source: C Labs Crypto Observation
Regarding the recent rumors of Powell's resignation, it is said that the pressure for his resignation does not come from any high-profile economic policy, but rather from issues related to the renovation of the Federal Reserve building.
This building has been under renovation since Powell first took office in 2018, and it has been almost 8 years without completion.
The budget has skyrocketed from an initial $1.5 billion to now $2.6 billion. The Federal Reserve, being independent, can approve its own expenditures, spending as it pleases—who would have thought?
Trump is indeed quite shrewd, seizing on this issue to claim that Powell is 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 expresses the President's "extreme concern" over Powell's "squandering taxpayer funds and extensive construction." Moreover, the project has exceeded its budget (by over $700 million), including: a rooftop garden, VIP private dining room, luxury elevators, water features, and high-end marble.
On average, each employee will occupy 512 square feet of office space, far exceeding the OMB's recommended standard (150 square feet), and significantly 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 wasteful. Many people may not realize that the Federal Reserve's $2.6 billion renovation 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 approximately 100,000 square meters, with a renovation cost of $26,000 per square meter!
I will 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 will still be a Federal Reserve governor. However, the term for a Federal Reserve governor is 14 years, with a change 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 clearly stated that interest rates should be lowered by at least three points from the current level.
Such a significant reduction in interest rates will undoubtedly trigger a global monetary easing.
The general public probably never imagined that this monetary easing was triggered by this renovation.
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