We’re agreed then that the FRB is a profit-making organization.
The members get a lot from their cosy relationship with Government. They get a statutory dividend. They get access to ultra-cheap loans. Since 2008 they get paid interest on their excess reserves. And they also get to vote for their regulators (!)
Under normal circumstances, the Federal Reserve makes a profit. Even though that is not its purpose.
I mean it would take Obama-level stupidity to run a Federal agency that creates electronic money out of thin air (and pays 0.25% interest on it) and that can print FRNs (and pays 0% interest on them) and uses the funds to buy guaranteed bonds that pay 2%-4% interest and not turn a profit.
They get a statutory dividend.
Absolutely! $1.7 billion last year.
They get access to ultra-cheap loans.
You bet! Currently 0.75%.
Since 2008 they get paid interest on their excess reserves.
They get paid on ALL their reserves.
And they also get to vote for their regulators (!)
Some of them. You're right!