"Elon Musk's D.O.G.E Fed Challenge: The Mystery Behind Last Week's 'Hawk' Move"

Elon Musk has targeted the Federal Reserve, calling it "excessively staffed in a nonsensical way" in a post on X (formerly known as Twitter). Please provide the text to be translated. The eccentric billionaire, who is set to lead the Department of Government Efficiency (DOGE) under President Donald Trump, seems to be interested in criticizing the central bank. His comment came after the central bank announced a "disappointing hawkish rate cut", causing market turmoil and harsh criticism from Trump. The Fed is recruiting about 24,000 people across 12 regional banks and the Board of Governors in Washington, a number that Elon and Trump deem excessive. Elon, along with entrepreneur Vivek Ramaswamy, is leading the efficient restructuring of Trump's $2 trillion government. "We are cutting fat," Trump said in his campaign. "No one is getting paid for doing nothing - not even Jerome Powell." Trump and Elon battling with Fed and Powell The president targeted the central bank from the very first day. He blamed the bank's monetary policy for restraining economic growth in his first term and launched many direct attacks on Powell, the Fed chairman he appointed. "That's the easiest job in government," mocked Trump. "You just show up once a month, say something vague, and let the rest take its course." Elon's new role is one of Trump's closest advisors amplifying these attacks. With DOGE, he plans to reorganize cumbersome organizations. In fact, this central bank uses much fewer employees than many central banks in Europe. Only the central banks of Germany, France, and Italy have surpassed the personnel level of the Fed, but Trump believes that this number is still too high. Christine Lagarde, President of the European Central Bank, has responded to his comments. She said, "I have thousands of hardworking people - economists, lawyers, computer scientists - defending the euro every day, not just once a month." As for Powell, he remains silent, true to his nature. Fed's hawkish rate cut Federal Reserve Bank of San Francisco President Mary Daly described last week's announcement of a 25 basis point interest rate cut as an "emergency call". Recently, she explained that this decision marks the end of an adjustment phase, forcing them to take a more cautious approach. The market is not well received. S&P 500 fell nearly 3%, and Nasdaq 100 fell 3.6%, reflecting investors' concerns about prolonged inflation and slower monetary easing. The FOMC also adjusted its forecast for 2025, raising the average estimate for the federal fund interest rate to 3.9% from 3.4%. This means there will be fewer rate cuts, with only two expected instead of six or even four as previously anticipated. Daly said policymakers must maintain flexibility, saying, "We will adjust if inflation falls more rapidly or if the labor market significantly weakens." The power of the labor market and the persistent inflation risk have put the Fed in a difficult position. Earlier this year, the Fed implemented interest rate cuts in September (50 basis points) and November (25 basis points) to counter signs of economic recession. However, inflation still persists, forcing the Fed to balance between growth and stability. Budget and personnel of the Fed The Fed's budget for 2024 will increase by 6.3% to $6.053 trillion, including activities, employee salaries, and services for the US Treasury Department. The Fed plans to hire 21,238 full-time employees, a 1.9% increase from last year. Elon called this growth 'unacceptable,' pointing out technological advancements that could help reduce the need for additional personnel. Trump's broader economic policies could pose additional challenges for the Fed. The proposed tariffs and tax cuts are expected to push inflation up by 2.5 percentage points, possibly pushing the core inflation above the 2% target by 2025. Analysts warn that the Fed may even have to postpone two interest rate cuts next year until the fourth quarter for this reason. Meanwhile, Powell defended the independence of his office, saying that their decisions are made for the benefit of all Americans, not for political purposes. But Trump doesn't care. "Why don't the officials who are not re-elected have the final say on our economy?" he asks. "We are taking back control."