Federal Reserve profits fall as normalisation takes hold
The Fed remittances to US Treasury fell by 18.5% from last year
The Federal Reserve sent lower remittances to the US Treasury in 2018, as normalisation increased interest expenses and drained income.
The Fed sent about $65.4 billion of its profits to the Treasury, down 18.5% from the previous year, and 44.1% down from the $117 billion paid in 2015, a statement from the Fed revealed.
Last year’s payments included $3.2 billion from the Fed’s capital surplus account, which lawmakers tapped into twice to offset government spending.
NormalisationThe central
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Unconventional monetary policy
ECB economists highlight smooth quantitative tightening
Foreign investors are largest euro area securities holders, but households are buying more
The BoJ’s possible path to positive rates
Are market expectations about a spring shift from negative Japanese rates credible, asks Sayuri Shirai
Central banks should co-ordinate policy – Minneapolis Fed paper
Policy-makers should consider decisions’ effects on world real rate, authors say
BoJ’s Himino highlights benefits of ending negative rates
Deputy governor says there has been "solid progress" in firms’ price and wage-setting behaviour
Defending the basis
Benefits of additional Treasury liquidity may outweigh potential intervention costs during a hypothetical panic, writes Joseph Wang
BoJ scraps rigid bond yield cap
Central bank further loosens YCC, ends daily bond buys and raises inflation forecasts
The predicament of bloated central bank balance sheets
Swollen balance sheets carry significant risks for combating inflation, ensuring financial stability and preserving central bank credibility, independence and effectiveness. How can central banks reduce them?
Bank of Japan steps up bond purchases
Central bank faces pressure to raise rates as yields on 10-year government bonds rise
Most read
- Central banks prepare for the rise of AI
- Bundesbank’s Nagel: central bank business models are changing
- Central bank of the year: Central Bank of Brazil