The Federal Reserve System paid $54.9 billion out of its annual net income to the U.S. Treasury in 2019, according to figures released today. The payments declined from previous years, falling from $80.6 billion in 2017 and $65.3 billion in 2018.
The Federal Reserve Banks’ net income in 2019 was estimated at $55.5 billion, a $7.6 billion decrease from the year prior. The reduction in the Fed banks’ net income was attributed primarily to a decrease in interest income on securities acquired through open market operations and an increase in interest expense on securities sold under agreement to repurchase. Fed bank income comes mostly from interest on securities purchased through the system’s open market operations.
Treasury payments are calculated after the costs of operations, dividends and other expenses. The regional Fed banks had net operating expenses of $4.5 billion in 2019, and the Fed system also paid $837 million to produce and retire currency, $814 million to fund the Federal Reserve Board of Governors and $519 million for the operations of the Consumer Financial Protection Bureau. Dividend payments to Federal Reserve member banks totaled $714 million.