Fed Pays $107.4 Billion to Treasury in 2021

The Federal Reserve System paid $107.4 billion out of its annual net income to the U.S. Treasury in 2021, according to figures released today, an increase from 2020. The Federal Reserve Banks’ net income in 2021 was estimated at $107.8 billion, an increase of $19.3 billion from 2020. The increase in the Fed banks’ net income was largely attributed to a $25.1 billion increase in interest income associated with U.S. Treasury securities. Fed bank income comes mostly from interest income 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 $5.3 billion in 2021, and the Fed system also paid $1 billion to produce, issue and retire currency, $970 million to fund the Federal Reserve Board of Governors and $628 million for the operations of the CFPB. Dividend payments to Federal Reserve member banks totaled $583 million.

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