Fed’s interest earnings approach $100b
McClatchy Washington BureauMarch 20, 2015
The Federal Reserve building in Washington, D.C., August 30, 2013
CHUCK MYERS — MCTWASHINGTON — The Federal Reserve said Friday it transferred a record $96.9 billion to the U.S. treasury in 2014, profits on its unprecedented $4.4 trillion in holdings designed to support the U.S. economy in the aftermath of the Great Recession.
The Fed made public its audited financial statement for the 2014 calendar year. It actually earned $99.7 billion last year on its massive holdings of treasuries and mortgage-backed securities purchased in its aggressive bond buying from 2009 to 2014.
Under its efforts, known as quantitative easing, the Fed purchased government and mortgage bonds to dampen the interest rate on long-term bonds that influence the price of a mortgage, car loan and other big purchases. In doing so, the Fed also forced investors out of safe havens in search of better returns on risk taking. It’s one reason why the stock market has soared in recent years.
The Fed’s total assets were $4.5 trillion last year and its holdings generated $115.9 billion in interest income, the central bank said Friday, and that reflected an increase of $25.5 billion from 2013. The Fed also paid banks $6.9 billion in interest income for their balances held at Federal Reserve district banks last year.
Mais
Under its efforts, known as quantitative easing, the Fed purchased government and mortgage bonds to dampen the interest rate on long-term bonds that influence the price of a mortgage, car loan and other big purchases. In doing so, the Fed also forced investors out of safe havens in search of better returns on risk taking. It’s one reason why the stock market has soared in recent years.
The Fed’s total assets were $4.5 trillion last year and its holdings generated $115.9 billion in interest income, the central bank said Friday, and that reflected an increase of $25.5 billion from 2013. The Fed also paid banks $6.9 billion in interest income for their balances held at Federal Reserve district banks last year.
Mais
Nenhum comentário:
Postar um comentário