Written by: C Labs

Regarding the recent rumors of Powell's resignation, it is said that the pressure for his resignation does not stem from any lofty economic policy, but rather from the renovation issues of the Federal Reserve building.

This building has been under renovation since Powell first took office in 2018, and it's nearly 8 years later, and it's still not finished.

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

And because the Federal Reserve is independent, it can approve its own expenditures and spend however it wants, who would have thought?

Trump is really something, seizing on this issue to claim that Powell's actions are questionable and preparing to hold him accountable.

The U.S. President's Office of Management and Budget even prepared a formal letter:

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

Moreover, the project has gone over budget (over $700 million), including: rooftop gardens, VIP private dining rooms, luxurious elevators, water features, and high-end marble.

On average, each employee will occupy 512 square feet of office space, far exceeding the OMB recommended standard (150 square feet) and well above the renovation projects of other federal agencies.

It also pointed out that the Federal Reserve headquarters (Eccles Building) underwent a complete renovation from 1999 to 2003, and spending so much money again is too wasteful.

Many people may have no concept of the Federal Reserve spending $2.6 billion on renovations.

It's important to know that this expenditure ranks second in the world, with only the Pentagon being more expensive!

And the Pentagon's area is several times larger than the Federal Reserve building.

In terms of area, the Martin Building + Eccles Building + annex expansion is about 100,000 square meters, with a renovation cost of $26,000 per square meter!

I'll post a few photos of the renovated Federal Reserve building, let's see if it's worth such an expensive price?

Some may still think that even if Powell resigns, he is still a Federal Reserve governor.

The term for Federal Reserve governors is 14 years, and a new one can only be appointed every two years.

But in reality, Federal Reserve governors often resign. Since 2000, there have been a total of 23 governors, 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 likely to undergo significant changes.

Trump clearly stated that interest rates should be lowered by at least three points from the current level.

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

The general public probably never imagined that this round of monetary easing was triggered by this renovation 😁