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Tuesday
Jan102012

Federal Reserve Transfers $76.9 Billion Profit to Treasury

Adam Gault/Thinkstock(WASHINGTON) -- The Federal Reserve turned $76.9 billion in profits over to the U.S. Treasury Department in 2011, The New York Times reports. Federal law requires the central bank to consign its profits to the Treasury annually.

Despite turning in $2.4 billion less than in 2010, last year's transfer far surpasses those prior to the 2010 record.  In the years leading up to the financial crisis, the Fed's average annual contribution was $23 billion.  After 2007, these contributions grew larger with the average soaring to $54 billion, according to the Times.

The Times reports nearly 97 percent of the central bank's income was made as a result of interest payments on investments, including Treasury and mortgage-backed securities.

Copyright 2012 ABC News Radio

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