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What, me worry?\u00a0 The longstanding tagline of Mad’s Alfred E. Neuman, seems to be the guiding principle behind the U. S. Federal Reserve.\u00a0 Everyone complains of high interest rates, rising mortgage rates, escalating grocery and fuel costs – and the Fed is spending, literally, billions on refurbishing their headquarters.<\/p>\n
Federal Reserve Chair Jerome Powell is under mounting scrutiny after reports revealed that the central bank\u2019s Washington, D.C. headquarters renovation has soared to $2.5 billion and features a host of luxury upgrades.<\/p><\/blockquote>\n
Hell, it’s tough<\/em> to be a bureaucrat, right?<\/p>\n
The renovation, initially budgeted at $1.9 billion, has now ballooned by 32%. Lawmakers and the public have expressed outrage, particularly as details have emerged about the nature of the upgrades.<\/p>\n
Against this backdrop, Scott (SEN Tim Scott*) criticized the Fed for spending on what he called \u201crooftop terraces, custom elevators that open into VIP dining rooms, white marble finishes, and even a private art collection.\u201d He argued that while updating aging infrastructure is understandable, \u201cwhen senior citizens can barely afford Formica countertops, it sends the wrong message to spend public money on luxury upgrades that feel more like they belong in the Palace of Versailles than a public institution.\u201d<\/p><\/blockquote>\n
Mr. Powell pushed back against SEN. Scott’s statements:<\/p>\n
During his testimony, Powell pushed back on reports of extravagance, stating that \u201cthe media reports … are misleading and inaccurate in many, many respects.\u201d He insisted there were \u201cno VIP dining rooms, no marble, no special elevators, no water features, and no rooftop gardens.\u201d<\/p>\n
However, planning documents submitted to the National Capital Planning Commission appear to contradict Powell\u2019s denials, listing features such as \u201cvegetated roof terraces,\u201d \u201cprivate dining rooms,\u201d and \u201cmarble finishes.\u201d<\/p><\/blockquote>\n
Please tell us how a “vegetated roof terrace” differs from a “rooftop garden.” And is he saying the private dining rooms are for the hoi polloi, not for the VIPs? Bet that’s news to folks actually working there.<\/p>\n
The buildings really need to work, per Powell. They’re old, and he says the roofs leak. It’s all about safety for the workers.<\/p>\n
But multiple critics were quick to point out that this is simply not true, and even accused Powell of lying under oath. According to planning documents, the upgrades extend far beyond basic repairs or security enhancements, and explicitly include all of the outlined features. The documents explicitly include rooftop terraces designed to attract urban wildlife, custom elevators opening directly into private dining suites, extensive white marble finishes, new water features, and a private art collection. These amenities, described by Senate Banking Committee Chair Mark Scott as \u201cluxury upgrades that feel more like they belong in the Palace of Versailles than a public institution,\u201d highlight the growing disconnect between Fed policy and the American people’s struggles.\u00a0Barchart<\/a><\/p><\/blockquote>\n
* The author repeatedly refers to Sen. Mark Scott.\u00a0 Senator Scott (R, SC) is named Timothy.<\/p>\n
The Fed is self-funded and earns income from bonds it owns and services it provides. The Fed has almost always been profitable but has not been in the last few years due to high interest rate costs aimed at setting rates to lower inflation pressures. The Fed deals with losses via accounting measures and has repeatedly noted the red ink does not impede its work, but those losses now have some elected officials targeting the system that led to the losses.\u00a0\u00a0Reuters<\/a><\/p><\/blockquote>\n
“The Fed deals with losses via accounting measures and has repeatedly noted the red ink does not impede its work” – I think that translates to “they jigger the books to not look bad.”. If it wasn’t by Federal standards a rounding error sum, you would have to wonder how much spending two and a half billion on their buildings helps their bottom line.<\/p>\n","protected":false},"excerpt":{"rendered":"