The US Federal Reserve is independent from the government. Does this independence exacerbates or helps the mitigation of the budgetary problems of the...

Even though
the Federal Reserve Bank is independent, it works together with the Treasury Department when the
government needs money.

To make this explanation simpler, you should know
that the Federal Reserve Bank is the government's banker. All the revenues collected by the US
Treasury are stored at the Federal Reserve.

Take this example, can your bank
leave you if you need money for a project? The answer is "no," especially if you have
a good credit score. Your bank will extend a loan to you to help you complete the project. The
same is true with the relationship between the Federal Reserve and the government or
Treasury.

However, unlike the relationship that you have with your bank, the
Federal Reserve Bank doesn't give direct loans to the government. Instead, they help coordinate
the issuance of a Treasury bond. When treasury wants to borrow money, they issue a bond, which
is a debt instrument. Whoever buys the bond is promised repayment after a certain period known
as the maturity date. In addition, the lender is paid interest after every six months until the
bond matures.

After the government receives the loan from investors, it
deposits it in the Federal Reserve. Since the money is borrowed for a particular purpose, it is
kept in a different account and used for that purpose.