The Federal Reserve Leaves Interest Rates Unchanged, Fed Chair Pushes Back at Elon Musk’s Criticism
Federal Reserve Chair Jerome Powell pushed back on Wednesday at comments by billionaire Elon Musk that the central bank is “absurdly overstaffed.” Powell made the comments during a press conference following the Fed’s announcement that it would hold interest rates steady amid uncertainty over inflation.
Musk, who leads President Donald Trump’s Department of Government Efficiency (DOGE), had claimed in a post on X that the Fed is “absurdly overstaffed.” Powell responded to the criticism by stating that the central bank runs a “very careful budget process” and is fully aware of its expenses.
This is not the first time Powell and the Fed have faced criticism from Musk. In May, Musk tweeted that the “Fed has a crazy high number of employees,” and in August, he wrote that the Fed was “foolish” for not cutting interest rates sooner.
The Fed cut interest rates for the first time since March 2020 in September, and again in November and December, before pausing this month as the economy remains uncertain. The central bank’s decision to hold interest rates steady was made amid uncertainty over inflation, which reached a 40-year high in June 2022.
DOGE, which was established by President Trump, aims to reduce government waste and provide increased transparency over government spending. The organization has proposed a range of cuts, including simplifying the U.S. tax code, auditing the Pentagon, and ending federal employees’ remote work, among other measures.