The interest earnings also allow the Fed to cover its costs outside the federal government budget and appropriations process, contributing to the independence of the Fed from the executive and legislative branches. 11  Today, open market operations are carried out partly to neutralize the effect of swings in currency demand on the level of reserves.
Preventable foreclosures harm not only the affected borrowers and their communities but also, through their effects on the housing market, the broader economy and the financial system as well. Although a number of efforts are underway to address the problem of preventable foreclosures, more needs to be done. Generally speaking, the most attractive approaches to reducing preventable foreclosures fall into two main categories.