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What are the assets and liabilities of the Federal Reserve?

The Federal Reserve regularly discloses the assets and liabilities on its balance sheet The Fed's assets include Treasuries and mortgage-backed securities purchased under large scale asset purchase programs (LSAPs). Fed liabilities include U.S. currency in circulation and the reserves deposited by commercial banks.

How does the Fed decide what assets it holds?

The Fed decides what assets it holds, and whether to expand or shrink its holdings. When the Federal Reserve buys debt instruments like Treasury notes or mortgage-backed securities, it is seeking to increase their price and lower yields, while signaling a looser monetary policy to support the economy.

How do Federal Reserve Banks remit earnings?

8. The Federal Reserve Banks remit residual net earnings to the U.S. Treasury after providing for the costs of operations, payment of dividends, and the amount necessary to maintain each Federal Reserve Bank's allotted surplus cap. Positive amounts represent the estimated weekly remittances due to U.S. Treasury.

How much money does the Fed have in 2022?

Fed liabilities of $8.9 trillion as of March 31, 2022 included $4.6 trillion in deposits by banks and the U.S. Treasury, $2.22 trillion in Federal Reserve notes (i.e., currency in circulation), and $2.04 trillion in reverse repurchase agreements.

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