Fed Funds

While the Fed’s balance sheet has mushroomed from $850 billion in 2008 to $3.3 trillion today as a result of three rounds of quantitative easing, the last of which is not yet done, these holdings bring in considerable amounts of interest. Because the Fed must return all residual earnings to the Treasury, in 2012 the Fed paid Uncle Sam $89 billion! In 2011, it was $77 billion. Long Live QE!

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  1. Phil Embry says:

    Dr. Eisenberg attended the GOA conference in Amelia Island earlier this month and heard you speak. I’m still trying to get my head around QE and how it’s not as bad as it sounds. Can you elaborate a little on who’s buying what and how they plan to pay it back without printing more money and devaluing the dollar. Thanks.

    Phil Embry, President
    Embry Tax Consulting LLC

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