Fed Racks Up Record Profit Last Year

By Lindsey Ellerson

Jan 12, 2010 11:18am

ABC News' Matthew Jaffe reports: The Federal Reserve this morning announced a $46.1 billion profit for last year, a record windfall in the central bank’s 96-year history. In all, the Fed raked in $52.1 billion in net income, of which $46.1 billion now gets turned over to the Treasury Department. The earnings represent a sizable boost from 2008, when the Fed’s net income was $35.5 billion and the transfer to Treasury was $31.7 billion. The jump from 2008 is primarily due to increased earnings on securities holdings as a result of the Fed’s response to the economic downturn, the central bank said. In the last year, the Fed has launched a litany of programs to rescue the economy, including buying mortgage securities and government debt. While the Fed could still lose money as a result of their rescue efforts, the central bank’s 2009 earnings are a positive sign for their investments thus far. View the Fed’s announcement HERE.

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