Liquidity operations squeezed Fed’s net income last year

The Federal Reserve’s recent liquidity injections led to its lowest remittance to the Treasury since 2009, preliminary results show.

The central bank handed over $54.9 billion to the Treasury, down from $65.8 billion in 2018.

In total, the Fed’s net income was $55.5 billion, down by $7.6 billion in 2018. This is the lowest figure since 2009, where it netted $52.1 billion.

The decline was due largely to a decrease of $9.5 billion in interest income on securities purchased through open market

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