The Blubber

Billionaire Elon Musk suggested on Sunday that the Federal Reserve could be subject to increased scrutiny as his Department of Government Efficiency (DOGE) expands its audits of federal agencies and spending.

In response to a post on X about his support for an audit of the Fed, Musk made it clear that the central bank should not be exempt from oversight.

"All aspects of the government must be fully transparent and accountable to the people. No exceptions, including—if not especially—the Federal Reserve," Musk wrote.

Musk has long been a vocal critic of the Fed, frequently commenting on its monetary policy decisions and claiming the institution is overstaffed.

POWELL DISMISSES MUSK’S CLAIM THAT FED IS 'ABSURDLY OVERSTAFFED'

In May 2024, Musk wrote that the "Fed has a crazy high number of employees."

He has also criticized the central bank’s pace in adjusting interest rates. In August 2024, Musk posted that the Fed "needs to drop rates" and called it "foolish" for not acting sooner. The Fed later cut rates in September, followed by additional cuts in November and December.

FED CHAIR PUSHES BACK

At a press conference last month, Fed Chair Jerome Powell responded to Musk’s claim that the central bank is overstaffed. The question came after the Fed announced its decision to hold interest rates steady at a range of 4.25% to 4.5%.

"We run a very careful budget process where we’re fully aware of our responsibilities. We owe that to the public, and we believe we manage it well," Powell said. "I’ve got no further comment on that, thanks."

Musk’s DOGE initiative has already faced legal challenges. A federal judge recently blocked DOGE’s request for access to Treasury Department records after Democratic attorneys general filed a lawsuit opposing the audit.