The Federal Reserve is being accused of free-wheeling spending by the OMB.
“While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters. Now up to $2.5 billion, roughly $700 million over its initial cost. These renovations include terrace rooftop gardens, water features, VIP elevators, and premium marble. The cost per square foot is $1,923–double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today’s dollars! Unfortunately, Powell’s recent testimony to Congress has led to serious questions that now require additional oversight from OMB, in conjunction with the National Capital Planning Commission. Today, I sent the letter below to Chairman Powell to get to the bottom of this largesse” wrote Director Russ Vought in a post on X which linked to the full letter.
Council of Economic Advisors Director Kevin Hassett also weighed in on what he described as “runaway spending.”
“And the bottom line is that President Trump’s objective is to take all of government and make it better and make it work better for the American people. And government has gotten very big throughout Washington. And one of the places that hasn’t really responded yet to the downsizing that you’re talking about is the Federal Reserve. And I’m sure that whatever new leadership the president chooses for the new Federal that they’re going to pay close attention to the runaway spending, to the actual losses after years and years of profits, and so on” he told Larry Kudlow on FOX Business Thursday.
It’s no secret President Trump is unhappy with Chairman Jerome Powell as he continues lobbing verbal insults at the Fed Head during remarks and on social media. Hassett is rumored to be in the running to replace Powell, if and when the President decides to make the move.
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