A global point shaving triggered by a renovation

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

This building has been nearly 8 years since Powell first took office in 2018, and it still hasn't been renovated.

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

And the Fed can approve its own expenditures independently, spending however it wants. Surprised, huh?

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

The United States President's Office of Management and Budget has even prepared the official letter:

This official letter from the White House indicates that the President is "extremely concerned" about Powell's behavior of "squandering taxpayer funds and extensive construction."

Moreover, the project cost has exceeded budget (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 significantly higher than other federal agency renovation projects.

It was also pointed out that the headquarters of the Fed (Eccles Building) underwent a comprehensive renovation from 1999 to 2003, and spending so much money again now is too wasteful.

Many people may not have an idea about the Fed spending $2.6 billion on renovations. This expenditure ranks second in the world, only the Pentagon is more expensive!

The area of the Pentagon is several times larger than that of the Fed building.

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

I will post a few photos of the renovated Fed building, and let's see if it's worth such a high price.

Some may still feel that even if Powell resigns, he is still a Fed governor.

The term of a Fed governor is 14 years, and one can only be replaced every two years.

But in reality, members of the Fed often resign. Since 2000, there have been a total of 23 members of the Fed, 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 major reshuffle.

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

Such a large interest rate cut will definitely trigger global monetary easing.

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