Elon Musk has expressed skepticism about the $2.5 billion Federal Reserve building renovation, calling it an “eyebrow-raiser” that warrants scrutiny. The Tesla CEO’s comments come as he exits his efforts to curb wasteful government spending.
Musk cited his company DOGE’s supposed savings of $160 billion during its short operating life, highlighting the potential for cost overruns at other government projects. He questioned the value of the renovation, saying “what do you get for $2.5 billion in redecorating?” The Fed began the project in 2021 with an initial price tag of $1.9 billion.
Renovation goals include upgrading outdated systems, meeting building codes and regulations, updating technology, and improving energy efficiency. Fed officials claim that the changes will save money by consolidating staff into one space and reducing leasing costs. However, Musk’s comments suggest he believes more transparency is needed in government spending, particularly for projects with significant cost overruns.
In a rare interview, Musk expressed frustration with lack of scrutiny on government waste. He noted that the Federal Reserve is not directly funded by taxpayers but rather earns revenue from interest on its securities and fees from supervised banks. The central bank has seen operating losses due to rising interest rates in recent years.
Source: https://www.cnbc.com/2025/05/01/musk-says-eyebrow-raiser-2point5-fed-building-expansion-should-be-subject-to-scrutiny.html