Tuesday , January 12th, 2010
The U.S. Federal Reserve made record profits in 2009 and will return $45 billion to the U.S. Treasury, after its efforts to prop up the economy created a windfall for the government, the Washington Post reported.
The $45 billion reflects the highest earnings in the 96-year history of the U.S. central bank, the newspaper reported on its website late on Monday. The figure was obtained by calculations based on public documents, the Post said.
The Fed funds itself from its own operations and returns its profits to the Treasury. The largest previous refund to the Treasury was $34.6 billion in 2007, the Post said.
The report said much of the Fed’s higher earnings were sparked by the central bank’s aggressive program of buying bonds to push interest rates down and stimulate growth.
“When the people find they can vote themselves money, that will herald the end of the republic.” – Fall Of The Republic – Buy the DVD here