Federal Reserve Board: Reserve Bank income, expense data, transfers to the Treasury for 2020
(STL.News) The Federal Reserve Board on Monday announced preliminary results indicating that the Reserve Banks provided for payments of approximately $88.5 billion of their estimated 2020 net income to the U.S. Treasury. The 2020 audited Reserve Bank financial statements are expected to be published in March and may include adjustments to these preliminary unaudited results.
The Federal Reserve Banks’ 2020 estimated net income of $88.8 billion represents an increase of $33.3 billion from 2019, primarily attributable to a $27.1 billion decrease in interest expense associated with reserve balances held by depository institutions and a $5.3 billion decrease in interest expense associated with securities sold under agreements to resell. Net income for 2020 was derived primarily from $100 billion in interest income on securities acquired through open market operations–U.S. Treasury securities, federal agency and government-sponsored enterprise (GSE) mortgage-backed securities (MBS), and GSE debt securities, $723 million interest income on securities purchased under agreements to resell, realized gains of $664 million on GSE MBS, and foreign currency gains of $1.5 billion that result from the daily revaluation of foreign currency denominated investments at current exchange rates.