Reuters: Economic News: Fed earned about $86 billion on holdings in 2011: NY Fed

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Fed earned about $86 billion on holdings in 2011: NY Fed Apr 4th 2012, 15:03 NEW YORK | Wed Apr 4, 2012 11:03am EDT NEW YORK (Reuters) - The U.S. Federal Reserve earned about $86 billion of income before expenses from its system open market operations (SOMA) in 2011 and remitted about $75 billion of those earnings to the Treasury last year, the New York Fed said on Wednesday. Fed projections assume its SOMA holdings will remain stable near $2.6 trillion until mid-2013, then will fall steadily over the next four years because of redemptions and asset sales, the New York Fed said in its annual report on operations done on behalf of the U.S. central bank. The Fed has undertaken large-scale purchases of Treasuries and mortgage-backed securities in an effort to drive down longer-term interest rates in response to the 2008 financial crisis. The New York Fed's report said the said the remittance of $75 billion to the Treasury last year was well above typical averages before the financial crisis.

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