Fed pays Treasury $86.9B, largest sum in four years

WASHINGTON (AP) — The Federal Reserve earned $88.6 billion in 2020 and paid back to the federal government $86.9 billion, the largest Fed payment to the government in four years.

The Fed said Monday that its earnings were up $33.1 billion last year, again that reflected falling interest rates which meant the central bank

paid commercial banks less in interest payments on bank reserves that the Fed requires them to keep.

The $86.9 billion in payments to the U.S. Treasury was up 58.3% from the Fed’s payment of $54.9 billion in 2019.

It was the largest amount since the Fed paid the Treasury $91.5 billion in 2016.