Elmo’s Statements Need To Be Corrected

The Fed is absurdly overstaffed

— Elon Musk (@elonmusk) December 23, 2024

Twitter is crashing in part because Elmo fired so many employees. And 

A) 

According to a report in Bloomberg, the Federal Reserve Board in Washington and 12 regional reserve banks across the US employed about 24,000 people last year — significantly less than comparable institutions. In the Eurosystem, which comprises the European Central Bank and the region’s 20 national peers, the central banks of Germany, France and Italy together had more people on their payrolls.

Not enough? Then:

B) 

"What Jerome Powell said was Fed employees are overworked and the agency is not overstaffed," said Tapper. "And then he explained that the Fed is primarily self-funded through the interest it earns. In other words, cost-cutting measures such as laying off employees would ultimately not save taxpayers much money.

So these are not the $2 trillion you are looking for. And all you’d really do is crash the economy.

"There are a bunch of reasons why the Fed is potentially in Trump's crosshairs, and really don't want to be. They want to be politically independent," Rampell continued. "They have historically been politically independent. And that independence is crucial to their ability to continue to do their job, i.e., to get inflation down. And just to remind people, inflation has come down quite a lot in the past few years. It's not where it needs to be, certainly, but the fact that we have made as much progress as we have without tipping into recession, as many economists feared, is largely a credit to the Federal Reserve and its ongoing independence." 

"So picking a fight here, whether Elon Musk is doing it or Trump is doing it, will end quite badly for the economy writ large," Rampell concluded.

Ignorance may be bliss, but it’s still ignorance.