Federal Reserve’s Record 2009 Earnings: $45B
Since its earnings season, and everyone is closely watching the financials, we might as well talk about one more bank’s record earnings: The Federal Reserve . An analysis by the Washington Post’s calculates that the Fed return a substantial amount of money to the Treasury. The central bank’s higher earnings were primarily from two lines of business: Quantitative Easing (QE) saw the Fed aggressively buying bonds, push rates down and value up. The Fed quadrupled its asset allocation of U.S. government debt and mortgage-related securities to $1.8 trillion dollars last year, up from $497 billion in 2008. Bonds rallied strongly as the Fed sent interest rates to zero. Another source of revenue for the bank was interest income on this paper
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Federal Reserve’s Record 2009 Earnings: $45B