Fed says 2010 payment to government sets record
Fed pays US Treasury record $79.3 billion, reflecting gains from programs to aid economy
WASHINGTON (AP) -- The Federal Reserve is paying a record $79.3 billion to the U.S. government after the central bank earned a record amount of money last year from programs aimed at boosting the economy.
The Fed says its payment to the Treasury Department for 2010 is 67 percent higher than $47.4 billion it paid in 2009, the previous record.
The central bank earned a record $81.7 billion last year from its massive holdings of securities, which were purchased to help stabilize the financial system and pull the economy out of the recession. A portion of those earnings go toward funding the Fed, which receives no appropriations from Congress. Any money left over is turned over to the Treasury Department.
Martin Crutsinger, AP Economics Writer, On Tuesday March 22, 2011, 11:46 am EDT