FEBRUARY 1, 2010
Treasury to Get Nearly $80 Billion From Federal Reserve in 2011
WASHINGTON—The Treasury will get $156.3 billion from the Federal Reserve over the next two years after the central bank's huge asset purchases to counter the financial crisis, the White House said Monday.
In its proposed budget, the White House estimated the Treasury should receive $77 billion from the Fed this year and $79.3 billion in 2011, compared to 2009 deposits of $34.3 billion.
"Federal Reserve deposits of earnings with the Treasury will peak in 2011 and start to fall in the out-years as the Federal Reserve plans to wind down its portfolio," the budget said.
The U.S. central bank saw record profits in 2009 as its holdings of Treasurys, mortgage-backed securities and agency debt grew. The Fed last year generated net income of $52.1 billion, of which it paid $46.1 billion to the U.S. Treasury.
The Fed's balance sheet has ballooned to more than $2.2 trillion as it acquired billions of dollars in securities through unusual asset-purchase programs aimed at spurring economic growth.
The central bank last year purchased $300 billion in U.S. government debt and is on track to buy $1.25 trillion in mortgage-backed securities plus $175 billion in debt from government-backed mortgage companies by the end of March.
http://online.wsj.com/article/SB10001424052748704107204575039124108936554.html?mod=WSJ_Investing_MoreHeadlines
WASHINGTON—The Treasury will get $156.3 billion from the Federal Reserve over the next two years after the central bank's huge asset purchases to counter the financial crisis, the White House said Monday.
In its proposed budget, the White House estimated the Treasury should receive $77 billion from the Fed this year and $79.3 billion in 2011, compared to 2009 deposits of $34.3 billion.
"Federal Reserve deposits of earnings with the Treasury will peak in 2011 and start to fall in the out-years as the Federal Reserve plans to wind down its portfolio," the budget said.
The U.S. central bank saw record profits in 2009 as its holdings of Treasurys, mortgage-backed securities and agency debt grew. The Fed last year generated net income of $52.1 billion, of which it paid $46.1 billion to the U.S. Treasury.
The Fed's balance sheet has ballooned to more than $2.2 trillion as it acquired billions of dollars in securities through unusual asset-purchase programs aimed at spurring economic growth.
The central bank last year purchased $300 billion in U.S. government debt and is on track to buy $1.25 trillion in mortgage-backed securities plus $175 billion in debt from government-backed mortgage companies by the end of March.
http://online.wsj.com/article/SB10001424052748704107204575039124108936554.html?mod=WSJ_Investing_MoreHeadlines
