Federal Reserve blows $2.5B on ‘Palace of Versailles’ HQ
The Federal Reserve’s $2.5 Billion HQ Revamp Sparks Controversy
The Federal Reserve is moving forward with a massive $2.5 billion renovation of its Washington, DC headquarters, despite facing significant financial losses. One former official compared the behavior of Fed bureaucrats to that of French royalty.
The extravagant project, approved by government officials in 2021, is now being funded by American taxpayers due to the Fed’s lack of profit since 2022.
Andrew T. Levin, an economics professor at Dartmouth College, likened the project to the opulent Palace of Versailles, criticizing the excessive spending on the Fed’s building renovations.
Despite operating losses of $77.5 billion last year, Fed officials claim that their ability to operate and conduct monetary policy remains unaffected.
The Fed’s interest costs have surged, leading to financial challenges as it struggles to pay down its mounting losses, currently at $178 billion.
The costly renovations, which have seen a 32% increase in costs, have raised concerns about excessive spending and fiscal responsibility.
President Trump’s involvement in the Fed’s decision-making process and the project’s focus on modernizing the Fed’s existing buildings have also come under scrutiny.
Cost overruns, delays, and lack of oversight have raised questions about the Fed’s spending practices and the need for greater accountability.
