The White House criticized the Federal Reserve's $2.5 billion renovation project due to cost overruns, leading to a public disagreement between President Trump and Fed Chairman Jerome Powell. Trump's allies suggest the controversy could lead to Powell's ousting, but Trump has stated he won't fire him. Unlike federal departments funded by congressional appropriations, the Fed is self-funded through interest income from government securities. Its income is derived mainly from assets such as Treasury bonds and mortgage-backed securities, not taxpayer dollars, with a mission focused on stable prices and full employment.
The Federal Reserve's funding has come under scrutiny as the White House attacks the $2.5 billion headquarters renovation for cost overruns.
Most of the Fed's income comes from assets such as Treasury bonds and mortgage-backed securities that sit on the central bank's balance sheet and earn interest.
Unlike federal departments that receive taxpayer dollars via appropriations from Congress, the Fed is self-funded, largely via interest income from government securities it holds.
The Fed's mission isn't to maximize its earnings from trading securities. Instead, it has a dual mandate of stable prices and maximum employment.
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