Fed handed $76.9 billion to Treasury in 2011
Jan. 10, 2012, 12:02 p.m. EST
WASHINGTON (MarketWatch) - The Federal Reserve transferred $76.9 billion in earnings to the U.S. Treasury during 2011, the central bank announced Tuesday. The transfer is slightly less than the record $79.3 billion transferred in 2010. The Fed said it earned $83.6 billion in interest income from its massive portfolio of securities, which includes Treasury debt and mortgage securities. The Fed has been buying assets as part of a quantitative-easing program, an unconventional monetary policy designed to lower long-term interest rates and boost economic growth. The transfers in the past two years are about twice the pre-quantitative-easing levels. Under Fed policy, residual Fed earnings are distributed to the Treasury after covering expenses. The remittances to the Treasury are made weekly.
http://www.marketwatch.com/story/story?Guid=e57cfb81-e246-413a-8617-adc4dd69e64d&;link=MW_home_latest_news
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