Currently,the Federal Reserve earns approximately $30 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 (after covering operating costs) is returned to the U.S. Treasury, as per the Federal Reserve Act. This is done to support the government's budgetary needs and reduce the amount of public debt. The other options are incorrect as member banks do not receive earnings, the Fed only invests in government securities, and loaning to commercial banks would require changing the Federal Reserve Act.

Currently,the Federal Reserve Earns Approximately $30 Billion of Interest Annually