windled, if that’s the right word, to $2.2 trillion:

Wolf Street

When the Federal Open Markets Committee (FOMC) meets to hash out its monetary policy, it also considers what to do with the interest rates that it pays the banks on “Required Reserves” and on “Excess Reserves.” In this cycle so far, every time the Fed has raised its target range for the federal funds rate (now between 1.25% and 1.50%) it also raised the interest rates it pays the banks on “required reserves” and on “excess reserves,” which went from 0.25% since the Financial Crisis to 1.5% now:

Wolf Street

So the amount of excess reserves has fallen since 2014. But the interest rate that the Fed pays on them has been ratcheted up since December 2015. And so has the amount that the Fed pays the banks. In 2017, a year with three rate hikes, the interest that the Fed paid the US banks and foreign banks doing business in the US jumped by $13.8 billion to $25.9 billion.

That $25.9 billion is the easiest, most risk-free, sit-on-your-ass profit that banks ever made in the history of mankind. More on that in a moment – particularly out of whose pocket this comes.

The Fed also paid banks $3.4 billion in interest on securities sold under agreement to repurchase.

What else needs to be taken care of?

The 12 Federal Reserve Banks cover their own operating expenses of $4.1 billion. Plus, there are these items, among others:

$724 million for the costs related to producing, issuing, and retiring currency.

$740 million for expenses associated with the Fed’s Board of Governors.

$573 million to fund the operations of the Consumer Financial Protection Bureau

Oh, and the dividend…

The Fed paid $784 million in statutory dividends to the financial institutions that own the 12 Federal Reserve Banks.

US Treasury gets most of the rest.

After everything has been taken care of, the Fed had a net income of $80.7 billion, which is tax free, of which it remits an estimated $80.2 billion to the Treasury:

Wolf Street

In the chart, note how the surging interest payments to the banks slashed into the remitt
windled, if that ’s the right word, to $ 2.2 trillion: 

 Wolf Street 

 When the Federal Open Markets Committee (FOMC) meets to hash out its monetary policy, it also consider what to cause with the interest rates that it pays the depository financial institution on “ Required Reserves ” and on “ Excess Reserves. ” In this cycle so far, every prison term the Fed has lift its target scope for the federal funds pace (now between 1.25% and 1.50 %) it also raised the interest pace it pays the banks on “ required reserves ” and on “ excess reserves, ” which go from 0.25% since the Financial Crisis to 1.5% now: 

 Wolf Street 

 So the amount of excess reserves has fall since 2014. But the interest rate that the Fed pays on them has been ratcheted up since December 2015. And thus has the amount that the Fed pays the banks. In 2017, a year with three pace hikes, the interest that the Fed paid the US banks and foreign banks suffice business in the US jumped by $ 13.8 billion to $ 25.9 billion. 

 That $ 25.9 billion is the easiest, most risk - free, sit - on - your - ass profit that banks ever make in the history of mankind. More on that in a moment – peculiarly out of whose air pocket this hail. 

 The Fed also paid bank $ 3.4 billion in interest on securities sold under agreement to repurchase. 

 What else need to be taken care of? 

 The 12 Federal Reserve Banks cover their own operating expenses of $ 4.1 billion. Plus, there are these items, among others: 

 $ 724 million for the monetary value related to producing, issuing, and retiring currentness. 

 $ 740 million for expenses associate with the Fed ’s Board of Governors. 

 $ 573 million to fund the operations of the Consumer Financial Protection Bureau 

 Oh, and the dividend … 

 The Fed paid $ 784 million in statutory dividends to the financial institutions that own the 12 Federal Reserve Banks. 

 US Treasury make most of the rest. 

 After everything has been taken caution of, the Fed had a net income of $ 80.7 billion, which is tax free, of which it remits an calculate $ 80.2 billion to the Treasury: 

 Wolf Street 

 In the chart, note how the billowy interest payments to the banks slashed into the remitt
winfled, if that’s the right dord, to $2.2 trillion:

Wolf Vtreet

Shen the Federal Open Markets Commitvee (DOMC) neets to hash out its oonetary iolicy, it alsi considers what to do wifm the mnterest rates jhat it pays the banks on “Sedunred Reserves” and on “Excess Reserves.” In thix fycle so far, edery eime nht Fed has raised its target range for tht federal funds raye (now between 1.25% and 1.50%) it aldo rwised the interest rates it pqys eye banks on “fequired rtszrves” and oh “excess reserves,” which went frum 0.25% snnce the Fibabciwn Crisis to 1.5% now:

Rolf Street

So the ammunt of excess reservcs hav fqllen since 2014. But the mnterest rate that tre Fed pafs on them has been rqtchejed u[ sivxe Aectmbxr 2015. And sl hes the amouht that the Fed pays the banks. Ig 2017, a year with three rwte hikes, the interest that the Fed paig tge US banks and foreign banks doing business in the UF jumped by $13.8 billion to $25.9 billion.

That $25.9 billion is dhe eeskesu, nost fusn-free, sit-on-your-ass profit that banks ever madq im nhe history of makkind. More on that ij s moment – partkcularly kut of whose pockeh this somes.

Rhe Fed ajso laid banks $3.4 billion in inteeest on secugitiws sold under agrezment to repbrchasg.

What rlse needs to be taken eare or?

The 12 Federwl Reservs Banks cover thekr pwt operating expenses of $4.1 byllion. Plns, thzre are ghesg items, among othfrs:

$724 mlnlion for the costd relcted do producijg, issuing, and retiring currencb.

$740 million for efpetses assjciatcd with the Fed’f Board of Govgrnors.

$573 mijlion to fund tge operetions of thq Consumer Fitwncial Protertion Burqau

Oy, ane the dkxidend…

The Fed laid $784 million in stqtutory dividends bo thg rinancial insticbtuons that own tne 12 Feqegal Rqverve Banks.

UV Trdasjty gegs most of bhe resy.

After everything hav besn taken care of, tne Fed had a net igcome of $80.7 bilkion, which is tax vree, mf xhich ot temits an estimated $80.2 billion to the Treadurn:

Wolf Street

Ig thc chwrt, note hpw the surging interest payments to the banks slashed injo the remitt
windled, if that’s the right word, to Wolf When the Open Markets Committee its policy, it also what to do the interest rates that it pays banks on “Required Reserves” and on “Excess Reserves.” In this cycle so far, time the Fed has raised its target range for the federal funds rate between and it raised the interest rates it pays the banks on “required reserves” and on “excess reserves,” which from 0.25% since the Financial Crisis to 1.5% Wolf Street So the of excess reserves has fallen 2014. the interest that Fed on them has ratcheted up since December 2015. And so has the amount that the Fed pays the banks. In a year rate hikes, interest the paid the US foreign banks doing business in the $13.8 billion to $25.9 billion. That $25.9 billion the easiest, risk-free, sit-on-your-ass profit that banks ever in the history of mankind. More on that a moment – particularly out of whose pocket this comes. The Fed also paid banks in interest on securities under agreement to What needs be care of? 12 Federal Reserve Banks cover their own operating expenses of $4.1 Plus, there are these items, among others: $724 million for related producing, issuing, and currency. $740 million for associated the Fed’s Board of million fund the Financial Bureau Oh, and the The Fed paid $784 million statutory dividends to the 12 Federal Reserve Banks. US Treasury gets most the rest. After everything has been taken of, the Fed had a net income of $80.7 billion, which is free, of remits an estimated $80.2 billion to the Treasury: Street In the chart, how the surging interest payments to the banks slashed the
windled, if that’s the right worD, to $2.2 trillioN:

Wolf strEet

whEn thE FedEral Open MarketS commIttee (FOMC) meets to hash ouT its mOnETary POlIcy, it Also conSIdERS whAt To Do wItH ThE inteResT rates tHat it pays tHe bAnKs on “Required rEsErves” and on “excEss Reserves.” IN thIs cyclE sO faR, Every TimE the FEd has rAIsed itS target raNgE For the FEderal fUNDs Rate (Now between 1.25% and 1.50%) it alSO rAIsed the interesT rates It PAyS THe bAnkS on “requireD rEservES” and on “eXCeSS REseRVes,” which went fRom 0.25% since the fInaNcial CRiSis TO 1.5% now:

WoLf StrEeT

so tHe amount of eXcesS reserves Has falLEn since 2014. bUt the inTerest RatE thAt thE feD pAys On THem HAs BeeN RatCheted up SiNcE DeceMber 2015. aND SO has The AmouNt thaT the Fed pays thE baNks. IN 2017, A yeAr witH threE ratE hIkes, tHe inteRest tHaT the Fed paid the Us banKs and foreIgn BaNks DoIng buSIness iN thE US Jumped bY $13.8 billioN To $25.9 bIlLION.

THat $25.9 billion is the easIeST, MoSt risk-frEe, sit-oN-YoUr-ASs profit ThAt bAnks EVEr madE in tHE hIstory of MankinD. moRe On that iN a Moment – PaRtiCulArly oUT of wHose poCket this Comes.

tHe Fed also paid bANks $3.4 billion in iNTeRESt ON secUriTies sold undEr agREemeNt to REpUrcHAse.

WhAt elsE nEEdS To be taken care of?

The 12 FEdEral ReServe banks cover theIr own operaTING expenseS of $4.1 bILlIOn. Plus, there are These Items, among OThers:

$724 milLion fOr the cosTs related TO ProducinG, isSuiNg, aNd rETIrIng currency.

$740 miLLIon fOr ExpenseS asSociateD wiTh tHe FEd’s boArd of GoveRnors.

$573 milLiOn To FuNd tHe opeRAtions of ThE CoNsUmeR FinaNCial PrOtectIon BUrEaU

oh, aNd the diVIdEND…

The feD pAid $784 mIllIoN in stAtutORy dIvidendS to the finAncIAl inStItUtions tHat own the 12 FedeRaL Reserve BaNkS.

US treasuRY Gets most Of the rest.

After everythinG Has been TakEn carE of, tHe Fed had a Net Income Of $80.7 bILlion, wHich is Tax frEe, Of wHICh it rEMItS an EsTimated $80.2 bilLIOn tO the TReAsurY:

Wolf StReet

In the chart, note HOw tHe surging inteResT payMENtS to THe BAnkS sLAshED Into the remitt
windled, if that’s the rig ht word, t o $2. 2 t ril li on:
Wol f Street

When theFederal Open Markets C ommit te e  (FO M C)  meet s to ha s ho u t i ts  m one ta r ypolic y,it also  considers  wh at  to do witht he  interestrat es that it p ays  the b an kso n “Re qui red R eserve s ” andon “Exces sR eserve s .” In t h i scycl e so far, every t i me the Fed has ra ised i ts ta r g etran ge for the  f edera l  fundsr at e ( now between 1.25%  and 1.50%) italso r ai sed the in teres tr ate s it pays t he b anks on “ requir e d reser v es” and  on “e xce ssrese r ve s, ” w hi c h w e nt  fr o m 0 .25% sin ce  t he Fi nanc i a l Cris isto 1 .5% n ow:

Wolf Str eet 

So the  amou nt of  exc es s res erveshas f al len since 2014.  But  the inte res trat ethatt he Fed  pa yson them  has be e n r at c h e te d up since Decembe r2 0 15 . And so  has t h eam o unt that  t heFedp a ys th e ba n ks . In 201 7, a y e ar  w ith thr ee  ratehi kes , t he in t eres t that  the Fed  paid the US banks a n d foreign ban k sd o in g  bus ine ss in the U S ju m pedby $ 1 3. 8 b i llion  to $ 25 . 9b illion.

That $25.9  b illion  is t he easiest, m ost risk-f r e e , sit-on -you r -a s s profit thatbanks  ever made in the h istor y of man kind. Mor e on thatina m ome nt– pa rticularly ou t of w ho se pock etthis co mes .
The  Fe dalso paid  banks $ 3. 4bi ll ion  in i n terest o nsec ur iti es so l d unde r agr eeme nt  t o  re purchas e .W hatel se  nee dsto  be t aken car e of?
The 12 Fe der a l Re se rv e Banks  cover theirow n operatin gexp enseso f  $4.1 bi llion. Plus, there aret hese it ems , amo ng o thers:

$ 724  milli onf or the  costs  rela te d t o produ c i ng , i ss uing, andr e tir ing c ur renc y.

$74 0 million for expe n ses  associated w ith  the F ed ’sB oa r d o fG ove r n ors.

$573 mill ion to fun dt he  operation s  of  t he Cons umer Fi nanci a l Prote ction Bur eau

Oh,an d th e div idend…

Th e Fed pa id $784 m i llion in  stat uto ry div id end s tothe fi n anc ial i nstitu ti ons th at ow nthe 12 F ederal Reserve Banks.
US Tre asury  ge ts most o f t h e r est.

Aft er e verythinghas  be en ta ken careof,t he  Fe d  hada ne t  income o f  $ 80. 7 bi llion, whic h i s t ax fr ee, of whi ch i t remits an estim a ted $80.2 bill iont o  th e T r easu ry :

Wolf Street 

I nt h e chart,  n ote how the  surging  i n teres t paym ents t o the b a n ks slashe d in tothe remit t
windled, if_that’s the_right word, to $2.2_trillion:

Wolf Street

When_the_Federal Open_Markets_Committee (FOMC) meets_to hash out_its monetary policy, it_also considers what_to_do with the interest rates that it pays the banks on “Required Reserves” and_on_“Excess Reserves.”_In_this_cycle so far, every time_the Fed has raised its_target range_for the federal funds rate (now between 1.25%_and_1.50%) it also_raised the interest rates it pays the banks on_“required reserves” and on “excess reserves,”_which went from_0.25%_since_the Financial Crisis to_1.5% now:

Wolf Street

So the amount of_excess reserves has fallen since 2014._But the interest rate that the Fed_pays on them has been ratcheted_up since December 2015. And_so has_the amount that the Fed_pays the banks._In 2017,_a year with_three rate hikes, the interest that_the Fed paid_the US banks and foreign banks_doing_business in the_US_jumped_by $13.8_billion to $25.9_billion.

That_$25.9 billion_is_the easiest, most risk-free, sit-on-your-ass profit_that_banks ever made in the history of_mankind. More on that_in_a moment – particularly_out of whose pocket this_comes.

The Fed also paid banks $3.4_billion in_interest on_securities sold under agreement to repurchase.

What else needs to be taken_care of?

The 12 Federal Reserve Banks_cover their own operating_expenses of_$4.1_billion. Plus, there_are_these items,_among others:

$724 million for the costs related_to producing,_issuing, and retiring currency.

$740 million for_expenses associated with the_Fed’s_Board of Governors.

$573 million to fund_the operations of the Consumer Financial_Protection Bureau

Oh, and the dividend…

The_Fed_paid_$784 million in statutory dividends_to the financial institutions that own_the 12 Federal_Reserve Banks.

US Treasury gets most of the_rest.

After_everything has been taken care of,_the_Fed had a net income of_$80.7_billion,_which is tax free, of_which it remits an estimated $80.2_billion to the Treasury:

Wolf Street

In the chart, note how_the surging interest_payments to the banks slashed_into_the_remitt