Fed expects $76.9 billion transfer to US Treasury

The US Federal Reserve on January 10 estimated it will transfer $76.9 billion of its net income for 2011 to the US Treasury, after generating significant interest on assets purchased by the central bank.

Although the preliminary and unaudited amount is below the $79.3 billion distributed to US Treasury in 2010, it is well above the earnings made in the years prior to the crisis. In 2007, the Fed transferred just $34.6 billion to the Treasury.

The sharp increase in earnings stems from interest