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U.S. Fed sends 79.6 bln USD profit to Treasury in 2013

The U.S. Federal Reserve's balance sheet swelled by more than 1 trillion U.S. dollars last year and interest income from large securities holdings enabled it to remit 79.6 billion dollars to the U.S. Treasury, Fed report showed on Friday.

Total Fed asset holdings ballooned to 4 trillion dollars at the end of 2013, an increase of 1.1 trillion dollars over the end of 2012, according to the audited Fed financial statement released Friday.

Interest income on securities, mainly the Treasury bonds and mortgage-backed securities, totaled 90.4 billion dollars, an increase of 9.9 billion dollars over the previous year.

There were no realized gains on the sales of U.S. Treasury securities in 2013, compared to 13.3 billion dollars of gains in 2012 from the sales of short-term Treasury securities under a program known as "operation twist."

Since the onset of the financial crisis, the U.S. central bank has launched several rounds of asset purchase program, known as QEs, injecting billions of dollars into the financial system. Such non-conventional measure is meant to push down longer-term interest rates and spur the economic growth in the context of near zero short-term interest rates.

Last December, the Fed decided to start winding down its latest bond-buying program in measured steps. It has so far reduced the monthly asset purchasing pace from 85 billion dollars to 65 billion dollars and is expected to trim it by another 10 billion dollars when the Fed officials meet next week.

[Source: Xinhua, Washington, 14Mar14]

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small logoThis document has been published on 20Mar14 by the Equipo Nizkor and Derechos Human Rights. In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.