Congress, in need of revenue to help offset new spending, is raiding the Federal Reserve’s piggy bank.
The maneuver was tucked inside the sprawling budget deal that lawmakers passed early Friday morning, hours after the government’s funding authority ran out. It lowers the limits on so-called “surplus funding” at the Federal Reserve to $7.5 billion from $10 billion, one small way to offset the estimated $320 billion increase in federal spending.
The move came during an already tumultuous week for the Fed. New Chairman Jerome Powell was sworn in Monday morning, taking over from Janet Yellen in the midst of a newly volatile stock market and concerns about rising interest rates.