Source: EconLog
by Bryan Cutsinger
“The U.S. Federal Reserve differs from most government agencies in two important ways. First, the Federal Reserve determines its own operating budget and remits any remaining revenue to the U.S. Treasury. Second, the Federal Reserve has some control over its revenue, since it earns income from issuing money and holding interest-bearing assets. Issuing more money than is consistent with price stability can increase this revenue in the short run. Unlike a private firm, however, no individual or group owns the Federal Reserve’s residual income.” (03/03/26)
https://www.econlib.org/econlog/federal-reserve-revenue-cutsingers-solution