The Federal Reserve has been under attack of late.
For several months, President Donald Trump has been calling Fed chairman Jerome Powell “Too-Late Powell” in pushing the central bank to lower interest rates.
Real estate guys always love low interest rates, but I happen to agree with the Federal Open Market Committee decision to hold interest rates steady as they watch the data.
The economy seems to be doing fine, stock and bond markets are behaving, and there’s still a lot of uncertainty about the impact of tariffs.
But more recently, the Trump administration has also been criticizing a major renovation to the Federal Reserve’s Washington, D.C. headquarters as an “ostentatious overhaul” and a sign of mismanagement.
The $2.5 billion renovation reportedly involves extensive updates, including a five-story addition, underground tunnels connecting buildings, infrastructure and skylight-covered atria.
“A billion here, a billion there, and pretty soon you’re talking about real money.”
Senate Majority Leader Everett Dirksen, R-Ill.
The project initially included features described as “rooftop terrace gardens, VIP private dining rooms, water features and premium marble, though Powell has denied some of these claims, calling news media reports “misleading and inaccurate,” and no longer part of the plan.
Either way, at $2.5 billion, we’re talking some real money.
What seems amazing is that most politicians say they worry about deficit spending and our federal debt but, in fact, continue to behave like spendthrifts.
2025 federal budget data from the U.S. Treasury shows the U.S. government has spent $5.34 trillion this fiscal year compared to revenue collected of $4 trillion.
The difference contributed to our national debt, which now stands at a whopping $36.21 trillion. Net interest on the debt now represents 14% of the total budget — equal to what we spend on both Medicare and national defense — and almost three times what we spend on veterans benefits and services.
Fellow citizens — and taxpayers — if that hasn’t gotten your attention, then consider the amazing concept of compound interest.
According to the Congressional Budget Office, the federal debt is expected to reach $52 trillion in 2035 just 10 years from now, or 118% of our country’s gross domestic product.
That would put the United States in league with countries like Greece, Italy, Sudan and Lebanon. Beware of the company you keep.
It does strike me as a bit ironic — and hypocritical — for any of our politicians to pointing out another’s spending.
Estimates suggest that the “One Big Beautiful Bill” that was just recently signed into law will add more than $3 trillion to the federal debt over the next 10 years, which must be why Congress included a provision raising the debt ceiling by $5 trillion.
I enjoyed the analogy by Sen. Rand Paul, R-Ky., about what to do with a teenager who maxed-out a $2,000-limit credit card: to either have a serious talk about spending or simply raise the credit card max to $10,000.
This just might be a good time for we citizens to ask our elected officials to watch their spending and, if not running a balanced budget, at least slow the growth of deficit spending.
Maybe a little less lavish Fed remodel, and let’s not forget $5.6 billion price tag for the new Air Force One program.
A few billion here …