A Home Renovation Sparking Global Monetary Easing
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A Home Renovation Sparking Global Monetary Easing
The president expressed "extreme concern" over Powell's actions of "squandering taxpayer funds and engaging in grand construction projects."
Navigating Web3 tides with focused insightsBy C Labs
Rumors about Powell's recent resignation suggest that the pressure forcing him out wasn't related to high-level economic policies, but rather stemmed from the renovation issues at the Federal Reserve building.
Their building has been under renovation since 2018, when Powell first took office—nearly eight years—and it still isn’t finished.
The budget has ballooned from an initial $1.5 billion to $2.6 billion today.
And because the Federal Reserve operates independently, it can approve its own expenditures without external oversight—spending however it wants. Surprising, right?
Trump is really making waves by seizing on this issue, accusing Powell of financial misconduct and preparing to hold him accountable.
The White House Office of Management and Budget has even drafted an official letter:
This letter from the White House expresses the President’s “extreme concern” over Powell’s “wasteful spending of taxpayer dollars on lavish construction projects.”
The project has already exceeded its budget by more than $700 million, with expenditures including a rooftop garden, VIP private dining rooms, luxury elevators, water features, and premium marble finishes.
Each employee will occupy an average of 512 square feet of office space—far exceeding the OMB’s recommended standard of 150 square feet—and significantly higher than other federal renovation projects.
The letter also points out that the Fed’s headquarters (the Eccles Building) underwent a comprehensive renovation between 1999 and 2003, making the current massive spending appear highly wasteful.
Many people may not grasp how enormous $2.6 billion is for a building renovation.
It ranks second globally in renovation costs—only behind the Pentagon!
Yet the Pentagon is several times larger in area than the Federal Reserve building.
The combined area of the Martin Building, Eccles Building, and its extensions is approximately 100,000 square meters—meaning the renovation cost reaches $26,000 per square meter!
I’ve included some photos of the renovated Federal Reserve building—what do you think? Is it worth the price tag?
Some might still think that even if Powell resigns as Chair, he remains a Federal Reserve Governor.
Fed Governors serve 14-year terms, with only one eligible for replacement every two years.
But in practice, Fed Governors often resign early. Since 2000, there have been 23 governors, 15 of whom stepped down before their term ended—resulting in an average tenure of just five or six years.
So after Trump forces Powell out, a major reshuffle among the new cohort of Fed Governors appears likely.
Trump has clearly stated that interest rates should drop by at least three percentage points from current levels.
Such a massive rate cut will inevitably trigger a global wave of monetary easing.
The general public probably never imagined this round of liquidity surge could all stem from a single renovation project😁
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