Elon Musk has criticized the $2.5 billion Federal Reserve building renovation, questioning whether the cost is justified. The project, which began in 2021 with an initial budget of $1.9 billion, has seen cost increases due to rising material prices, construction delays, design changes, and site issues. The renovation aims to address a backlog of upgrades, meet building codes, update technology, and improve energy efficiency. Fed officials argue that consolidating staff into one space will reduce leasing costs and provide a modern workspace for employees. Musk suggests that such cost overruns should be scrutinized as part of broader efforts to reduce government waste. While the Fed is not taxpayer-funded, its revenue comes from interest on securities and fees from supervised banks. Any surplus beyond operating costs is returned to the Treasury. — new from CNBC
