The Tesla CEO and Trump advisor said his federal cost-cutters should take a closer look at the central bank, citing the substantial cost of its Washington, D.C., headquarters renovation as a possible source of waste.
Still, Musk criticized the high price tag of the construction Wednesday.
The Fed generally does not receive taxpayer funds as it is self-funded from the interest on securities on its balance sheet and fees from banks. For years, the Fed returned any funds it had after covering its operating costs to the Treasury, yet in recent years, the Fed has run a deficit because of increased interest payments, Bloomberg reported.
However, documents filed with the National Capital Planning Commission note the Fed’s headquarters, which houses not just staff but also important information on the banks it regulates, was in disrepair.
Musk’s recent comments on the Fed come as Trump has escalated his rhetoric against Fed Chairman Jerome Powell and has repeatedly called for the central bank to cut interest rates.
