The Federal Reserve said Jan. 10 it remitted about $63.1 billion in net income to the Treasury Department in 2018, a $17.6 billion drop from 2017.
For 2018, net income was derived primarily from $112.3 billion from interest on securities acquired through open market operations.
The Fed said the drop in profits is largely due to the interest payment to depository institutions for excess reserve balances they hold. The increase in interest payment for 2018 was $12.6 billion.
Operating expenses of the reserve banks, net of amounts reimbursed by the U.S. Treasury and other entities for services the reserve banks provided as fiscal agents, reached $4.3 billion in 2018.