Comment: They do

(See in situ)

They do

The Fed prints money to give banks almost interest-free loans. The banks eventually do pay the Fed back, and after the Fed has paid its electric bill, that repayment money is what gets returned to the Treasury.

Since 2008, the Fed has also been printing money to buy mortgage backed securities, and since it came into existence it has always been there to buy US treasuries from the government. The 'profit' that is being talked about in this case is how these types of things that the Fed had on its balance sheet are now 'worth' $77B more than they were a year ago.

This is propaganda to manipulate the unthinking public into believing that because the Fed's 'portfolio' went up in value, it must mean that they are shrewd financial managers. Never mind that if the mortgage backed securities that they own were marked to market, the loss would overwhelm any of the pathetic gains that their treasury or corporate paper holdings had. Smart people know that the stuff that they've brought on board would be drop in price to a fraction of what they claim its worth the day they stopped buying it.