Overview

• Elon Musk has questioned the $2.5 billion cost of the Federal Reserve’s Washington, D.C. headquarters renovation, labeling it an 'eyebrow raiser.'
• The renovation, initially budgeted at $1.9 billion in 2021, has faced cost increases due to material price hikes, design changes, construction delays, and site issues.
• The Federal Reserve defends the project as essential for consolidating staff, upgrading outdated systems, improving energy efficiency, and meeting building codes.
• Musk has tasked his Department of Government Efficiency (DOGE) with investigating the expenditures, as the initiative claims to have saved taxpayers $160 billion by reviewing federal spending.
• The Federal Reserve, self-funded through interest and bank fees, has recently run operating losses but argues the renovation is necessary to address aging infrastructure.