re: Why are taxpayers funding the Federal Reserve building renovations?

And before someone starts attacking me for "defending the fed", i'm just thinking about this rationally. I too, used to be a "end the fed" type person, but i never really understood what that meant nor really what the fed does.

I think the fed is needed. Mainly, because i don't want politicians making banking decisions that impact our currency. Politicians are not bankers, accountants, builders, auto makers, businessmen. For the most part, politicians are lawyers. Lawyers are not experts at any particular field. Having a bunch of people who went to school to become a politician, vs. people who went to school to learn about finance/econ is not the same. I don't want some politician setting policy on how to grow corn. I'd rather a farmer make those decisions. The politician listens to the lobbyists, who have their own selfish interests.

Now, with bureacracy, like the fed, you will always get this scenario. However, when you delegate responsibility to Congress, you are asking for a bunch of people who don't know shite about a particular subject, make the policy for that subject. I'd rather the people in the banking industry make the decisions regarding the industry they work in. Now that doesn't mean the fed should be left to their own devices. Oversight of the fed is needed. And frankly, POTUS should do a much better job at selecting the board members. It should probably be the #1 or 2 priority for any incoming administration.

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Why does a board of 12, need a multi billion dollar building?

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The building they are occupying was not constructed for the fed. They are simply occupying the offices. It is a federal building. If there are renovations to federal buildings, then we, the taxpayer, pays for them. Regardless of who is in that office.

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There is the bigger problem. The Federal Reserve is not designed to be a profit-making entity

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Wrong, they make money and after expenses, are "supposed" to return surplus to the government.
That surplus is mysteriously not being sent, yet being used to fund "cost overruns" on the renovation.
Now do you understand why Trump is pissed?

Instead of several billion being returned to the treasury, Powell has been secretly approving cost overruns, with no accountability.
The building could have been leveled and rebuilt, by the cost of just the overruns...not including the original price.


Its insane and LOADED with fraud and abuse.....follow the money

If the Federal Reserve wanted theoretical political autonomy, then they needed to pay for their own renovations.

But read the following post. Your assessment is that it is strictly a federal building and nothing else seems greatly misplaced. Thus my post.

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read this is entirely funded out of the Federal Reserve and is not tax payer dollars.

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True, until you realize the are supposed to send any money, over expenses, to the treasury.
So yeah, they're paying, with money thats supposed to go to the treasury

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The Fed buys U.S. Treasury securities and other government-backed assets through open market operations.

These securities pay interest, which becomes income for the Fed.

This is the largest source of revenue.

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Thanks!

LINK

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The Fed's income comes primarily from the interest on government securities that it has acquired through open market operations. After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.

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So, the fed is a government entity that does not cost the taxpayers anything, via the interest on those securityes. Anything in addition goes to the treasury. What's the problem again?

Let me tell you how things work in the real world, not Government world.
Before I retired I worked a career with a very large, worldwide engineering company. we owned buildings in which offices were located. We leased office space from companies that owned the buildings Basically all the possibilities an office could exist in an office, or on site, or in conjunction with a clients site/ownership, we did.
For every project, each person working was billing to the project for computers, cubicle space, software, anything that employee was using is charged to the project they're working on. Want to get laid off real fast, go on overhead charging. Anyway, Project Managers were always watching those charges as they were responsible for their project earnings to cover those cost.

So in a real world situation, the Federal Reserve cost of office space, regardless of who is renovating as it's all cost of total building ownership, must or should cover the cost of the renovation out of the proceeds they're making from loaning money to the banks. This is how shite gets fricked up. The Federal Reserve will keep all the incoming money or profit, and send the cost to the tax payer.

Don't reply to me, you won't change my mind or convince me of anything otherwise.