[Right_Wing_Madman]

FWIW - Interest on bills held by the Fed is returned to the Treasury, isn't it?

Nope. The Federal Reserve operates like a normal bank that's in the business of making money. Ideally, the Treasury interest the Fed receives is greater than the interest the Fed pays to other banks for their deposits.

[Chad C. Mulligan]

Nope. The Federal Reserve operates like a normal bank that's in the business of making money.

Not quite. I wasn't wrong. The Fed returns a large portion of it's PROFIT back to the Treasury. Until 2023, anyway.....thanks to the Bidenflation fiscal policies.

https://www.reuters.com/business/fed-may-need-four-years-recoup-income-loss-st-louis-fed-study-says-2023-11-27/