The current Fed is determined to continue its bond-buying program until the unemployment rate comes down substantially.
 
The Fed uses interest income from its holdings to pay its expenses, then sends what’s left over to the Treasury. In 2012, taxpayers received $88.9 billion in the form of Treasury contributions by the Fed.
 
The Fed’s balance sheet is now three times its size since before the 2008 crisis.
 
One risk cited by researchers in the Fed’s monetary affairs division is the possibility that the Fed’s interest income payments to the Treasury could disappear as interest rates rise over the coming years.
 
The payments would likely decline over a period of years until they reach zero at certain times.

 

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