Liquidity operations squeezed Fed’s net income last year

Repurchase agreements cost the Fed $6 billion in 2019, preliminary results show

US Federal Reserve
Photo: US Federal Reserve

The Federal Reserve’s recent liquidity injections led to its lowest remittance to the Treasury since 2009, preliminary results show.

The central bank handed over $54.9 billion to the Treasury, down from $65.8 billion in 2018.

In total, the Fed’s net income was $55.5 billion, down by $7.6 billion in 2018. This is the lowest figure since 2009, where it netted $52.1 billion. 

The decline was due largely to a decrease of $9.5 billion in interest income on securities purchased through open market

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.