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Federal Reserve pays government $88.9 billion

Published on NewsOK Modified: January 10, 2013 at 11:14 am •  Published: January 10, 2013
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The Fed is funded from interest earned on its portfolio of securities. After covering its expenses, the Fed makes a payment of the remaining amount to the Treasury Department. Before the Fed launched the first bond buying program in 2008, its annual payments had averaged below $30 billion for the previous three years.

The 2012 payment to the Treasury was reduced by $387 million which went to fund the operations of the Consumer Financial Protection Bureau and the Office of Financial Research, two new agencies created by the 2010 Dodd-Frank Act which overhauled the government's financial regulations. Republicans opposed having these agencies receive their operating funds from the Federal Reserve rather than going through the normal appropriations process in Congress.