Created by the Federal government. Net profits returned to the Federal government.
Reserves limited to $2.4 trillion in US Treasuries, $1.7 trillion in guaranteed MBS and $280 billion in gold.
Except for that, you're right. LOL!
Created by an Act of Congress... Yes. Owned by the banks. Right? So is it federal? NO. And your regurgitation about reserves is hilarious. Dollar denominated gold by dollars that are debt notes... Funny thing debt, it only swings one way.
The Fed “bought” 85 or so percent of those “reserves” with made-up digital money. It’s backed by nothing so the Fed is stuck w/ it, they can’t dump it which makes it worth practically nothing. Looks really good on the Fed website “balance sheet” to the Keynesians but as a tangle asset, no.
Hence, we see the articles touting how it is such a necessary thing and actually it’s a really good thing (on & on they go about it) for the Fed to permanently carry a $4T [phony] “balance” which is a polite way of saying “Hey, Fed, you created it so you’re stuck with it.”
Even the legitimate $100B or so that’s being generated by that permanent balance is being used to prop up long bonds instead of sending it to the Treasury ledger as should be done.