Elon Musk considers auditing US Federal Reserve amidst government efficiency overhaul

Billionaire entrepreneur Elon Musk has suggested that he is contemplating an audit of the Federal Reserve, continuing his push for increased central bank oversight. Reuters reported that Musk remarked on Thursday (Feb 20) while speaking at the Conservative Political Action Conference in National Harbour, Maryland.His comment aligns with his broader advocacy for greater transparency in federal institutions, an issue he has addressed in the past. Since Donald Trump assumed office for his second term last month, Musk has been linked to the administration’s cost-cutting drive through the Department of Government Efficiency (DOGE), which has initiated a sweeping review of federal agencies, as per Reuters.

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Despite Musk’s apparent influence on the initiative, the White House has clarified that he does not hold an official position within DOGE. He is instead serving as a senior advisor to President Trump, reported The Associated Press (AP).
Musk’s involvement in the administration’s efforts has become central to an ongoing legal battle concerning DOGE’s authority to access government data.Several democratic states have filed lawsuits challenging the initiative, arguing that Musk wields “virtually unchecked power” despite not being an elected official or a Senate-confirmed appointee.

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The Trump administration has rejected these claims. In a court filing on Monday, February 17, Joshua Fisher, director of the White House Office of Administration, stated that Musk is not a DOGE employee and holds “no actual authority to make government decisions himself,” reported AP. The filings, however, did not disclose who is leading DOGE.

White House has reiterated that individual agency heads are responsible for implementing layoffs rather than DOGE, as per AP. On the other hand, Reuters reported that the team has been actively reviewing budgets, accessing government computer systems, and identifying potential inefficiencies. These activities have led to multiple legal challenges, including at least two lawsuits specifically targeting Musk.

(With inputs from agencies)