Friday, June 21, 2019

Fed Capital by Law

Excerpt from the Fed's audit statements for CY 2018:

“The Reserve Banks provided for remittances to the U.S. Treasury of $65.3 billion in 2018, including two lump-sum payments totaling approximately $3.2 billion that were necessary to reduce the aggregate Reserve Bank capital surplus to $6.8 billion as required by the Bipartisan Budget Act of 2018 and the Economic Growth, Regulatory Relief, and Consumer Protection Act.”

So for all you lawyers out there, latest law in 2018 directs Fed to operate to maintain the Central Bank Residual at $6.8B, no biggie...