A global point shaving triggered by a renovation

The president expressed "extreme concern" over Powell's behavior of "squandering taxpayer money and engaging in large-scale construction."

Written by: C Labs

Regarding the recent rumors about Powell's resignation, it is said that the pressure forcing him to resign does not come from any lofty economic policies, but rather from the renovation issues of the Federal Reserve building.

Their building has been under renovation since Powell took office for the first time in 2018, and it has almost been 8 years without completion.

The budget has skyrocketed from the initial 1.5 billion USD to the current 2.6 billion USD.

And the Federal Reserve, due to its independence, can approve its own expenses and spend as it wishes. Didn't see that coming, right?

Trump is really something, seizing on this issue to claim that Powell's butt is not clean and preparing to hold him accountable.

The U.S. President's Office of Management and Budget has even prepared a letter:

This letter from the White House indicates that the President has "extreme concerns" about Powell's behavior of "squandering taxpayer funds and engaging in massive construction."

Moreover, the project cost has exceeded budget (already over 700 million USD), including: rooftop garden, VIP private restaurant, 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 was also pointed out that the Federal Reserve headquarters (Eccles Building) underwent a comprehensive renovation from 1999 to 2003, and spending so much money again now is too wasteful.

Many people may have no concept of the Federal Reserve spending 2.6 billion dollars on renovations.

This expenditure ranks second in the world, with only the Pentagon being more expensive!

The area of the Pentagon is several times larger than that of the Federal Reserve Building.

In terms of area, the Martin Building + Eccles Building + affiliated expansion is about 100,000 square meters, and the decoration cost per square meter is 26,000 USD!

I will share a few photos of the renovated Federal Reserve building. Let everyone see if it's worth such a high price?

Some people may still feel that even if Powell resigns, he is still a member of the Federal Reserve.

The term for a member of the Federal Reserve Board is 14 years, and one can only be replaced every two years.

But in reality, members of the Federal Reserve Board often resign. Since the year 2000, there have been a total of 23 members on the Federal Reserve Board, of which 15 resigned early, with an average tenure of only five to six years.

Therefore, after Trump ousts Powell, the new Federal Reserve Board is expected to undergo a significant reshuffling.

Trump made it clear that interest rates need to be lowered by at least three points from the current level.

Such a large rate cut will surely trigger a global monetary easing.

The general public probably never imagined that this round of stimulus was triggered by this renovation😁