{"id":169742,"date":"2010-01-12T09:29:00","date_gmt":"2010-01-12T14:29:00","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/01\/12\/fed-generates-461-billion-profit-in-2009\/"},"modified":"2010-01-12T09:29:00","modified_gmt":"2010-01-12T14:29:00","slug":"fed-generates-46-1-billion-profit-in-2009","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/169742","title":{"rendered":"Fed Generates $46.1 Billion Profit in 2009"},"content":{"rendered":"

The Federal Reserve <\/strong>had its biggest bottom line ever in 2009, generating record profits as its holdings of Treasury, mortgaged-backed securities and agency debt grew.<\/p>\n

The Fed last year generated a net income of $52.1 billion, of which it paid $46.1 billion to the U.S. Treasury, the Fed said Tuesday<\/a>. The windfall came as the Fed’s balance sheet ballooned to more than $2.2 trillion and the Fed acquired billions in securities through unusual asset-purchase programs aimed at spurring economic growth.<\/p>\n

The Fed last year purchased $300 billion in US government debt and is on track to buy $1.25 trillion in mortgage-backed securities plus $175 billion in debt from government-backed mortgage agencies. The larger holdings more than offset the historically low interest rates that bring the Fed its income.<\/p>\n

The Fed\u0092s 2009 earnings were up 47% from 2008 when it generated a net income of $35.5 billion and transferred $31.7 billion to the Treasury.<\/p>\n

The 2009 earnings reflect an estimated $3.7 billion in losses on holdings the Fed acquired when it helped J.P. Morgan Chase<\/strong> & Co. buy Bear Stearns<\/strong> and when it rescued American International Group<\/strong>.<\/p>\n

Of the 2009 earnings, $46.1 billion was generated through open market operations and $5.5 billion was generated by companies it created as part of the Bear Stearns, AIG and other rescue operations. The Fed earned $2.9 billion in 2009 on interest on loans it made to banks and other institutions.<\/p>\n

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The Federal Reserve had its biggest bottom line ever in 2009, generating record profits as its holdings of Treasury, mortgaged-backed securities and agency debt grew. The Fed last year generated a net income of $52.1 billion, of which it paid $46.1 billion to the U.S. Treasury, the Fed said Tuesday. The windfall came as the […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-169742","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/169742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=169742"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/169742\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=169742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=169742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=169742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}