Billionaire Elon Musk, tapped to lead a government efficiency initiative under the incoming Trump administration, has set his sights on the Federal Reserve, labeling it “absurdly overstaffed,” Bloomberg reports.
The criticism comes amid broader scrutiny of the central bank from both Musk and President-elect Donald Trump.
Musk, in a post on social media platform X, made the comment in response to a discussion about the Fed’s recent policy decisions. This critique mirrors President-elect Trump’s own attacks on the Fed, where he has argued for more direct influence over monetary policy and interest rate settings.
Musk is set to head the newly formed Department of Government Efficiency (DOGE) alongside entrepreneur Vivek Ramaswamy. This agency aims to streamline government operations and cut $2 trillion in spending.
While Musk has characterized the Fed as excessively staffed, data shows the institution employs roughly 24,000 people across its Washington board and 12 regional reserve banks – a figure considerably smaller than some comparable institutions. For instance, the central banks of Germany, France, and Italy within the Eurosystem, employ a greater total number of staff.
The Fed, and specifically Chair Jerome Powell, have been a frequent target of Trump. Recently, Trump downplayed Powell’s role, describing it as “the greatest job in government” where he merely “flips a coin” each month for decisions. Despite appointing Powell during his first term, Trump has been critical of his leadership.
Chair Powell has not directly responded to Trump’s or Musk’s remarks. However, Christine Lagarde, President of the European Central Bank (ECB), defended the work of central bank staff. She extended an invitation to Trump to observe the operations at the ECB in Frankfurt.
