The Federal Reserve announced the final total on its remittances to the Treasury in 2018. As the size of the Fed’s holdings of securities held outright has declined, so has the size of the remittances. For 2018 as a whole, the Fed paid out $65.3 billion in earning remittances, down from $80.2 billion in 2017. The total is down about 1/3 from the peak of $97.7 billion in 2015.
The total will decline further in 2019. However, with the process of balance sheet normalization will start to wind down in May with the first phase of the plan completing in September. Chair Jerome Powell has said that the size of the balance sheet should end somewhere north of $3.5 trillion. As such, remittances paid out to Treasury may not decline so much in the current year. The Federal Reserve won’t announce this until a preliminary estimate in January 2020.
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