Part 2/8:
A central point of contention arose when one congressperson pointed out that the Federal Reserve has reportedly not produced earnings since September 2022. This statement led to a vigorous back-and-forth regarding the legal and operational directives governing how agencies are funded through the earnings of the Federal Reserve System.
The congressperson indicated that, according to the statute, only earnings can be transferred to fund their agency's operations. This assertion was met with resistance from the Federal Reserve representative, who contended that while the Federal Reserve might experience net income losses, it continues to generate various forms of income and complies with existing statutes.