Powell Pushes Back on Musk's Claim That the Fed is "Absurdly Overstaffed"

Federal Reserve Chair Jerome Powell has responded to recent comments by Elon Musk, who stated that the Fed is, in his opinion, "absurdly overstaffed." During his speech, Powell emphasized that the number of employees at the Fed is adequate for fulfilling the central bank's tasks in line with its current mission. He added that the Fed's workforce has been reduced in recent years to effectively respond to the economic situation and maintain financial stability.

This statement comes in light of recent criticism directed at central banks, which, according to Musk, should optimize their structures for enhanced efficiency. Powell explained that the adaptation of staffing and processes serves to uphold economic policy and respond to the challenges the economy faces in the current environment.

Musk stressed the need to reduce bureaucratic layers to ensure quicker responses to changes in the economy. In his view, large organizations are often absurdly bloated and require a reassessment of their internal structures for better efficiency. Powell, on the other hand, assured that the Fed is doing everything possible to remain effective and focused on its primary task — managing monetary policy.

This is not the first time Musk has criticized the Federal Reserve. Previously, he expressed concerns about its role in shaping economic policy, especially amid rising inflation and financial market instability. Powell clarified that the Fed conducts its policy transparently and is always open to dialogue with the public, including critics and supporters.

This situation underscores the ongoing debates about the role of central banks in modern economic conditions and their ability to adapt to the rapidly changing world.

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