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Fed Had Profit From Investments Of $82 Billion Last Year

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Profits at the Federal Reserve banks rose to a record $82 billion last year, a windfall for taxpayers that also underscores the depth of the Fed’s continued involvement in the nation’s financial markets.

The 12 regional banks that make up the Federal Reserve system held $2.4 trillion in government debt, mortgage-backed securities and other investments at the end of 2010, mostly amassed in an effort to backstop the financial system, according to a combined financial statement the Fed published Tuesday.

The banks transfer almost all of their profits to the Treasury Department. The $79 billion received by the government this year is a 66 percent increase over last year’s payment of $47.5 billion, the previous high-water mark.

The Fed transferred an average of $25 billion a year in the decade before the crisis.

“It’s interest that the Treasury didn’t have to pay the Chinese,” the Federal Reserve chairman, Ben S. Bernanke, told Congress in January, after the central bank released a preliminary estimate of the annual transfer.

They only need to earn another $1.42tr and they might be able to have a balanced budget in the US.

I mean if the Fed is this profitable it needs expanding further to make even more money for the US taxpayer?

Clearly QE1 and QE2 in the US has been a huge success.

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  • 315 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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