Currently, the Federal Reserve earns approximately $90 billion of interest annually on its holdings of government bonds. Only a small portion of these earnings is required to cover the Fed's operating costs. The remainder of these earnings is

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The remainder of the earnings is returned to the U.S. Treasury, as mandated by law. This is known as the Fed's "profit remittance" and can amount to billions of dollars each year. The money is used to reduce the federal deficit or to fund government programs.

Currently, the Federal Reserve Earns Approximately $90 Billion of Interest