Summary Box: Fed turned over record payment to Uncle Sam last year

Summary Box: Fed made record payment to Uncle Sam

BIGGER WINDFALL: The Federal Reserve turned over a record payment of $47.4 billion last year to the Treasury Department. That’s slightly more than the $46.1 billion first estimated in January.

HOW IT WORKS: The Fed is funded from the interest earned on it vast portfolio of securities. It is not funded by Congress. After covering its expenses, the Fed gives what is left over to Treasury.

QUELLING FEARS: Critics have worried that the Fed’s actions to fight the financial and economic crisis could put taxpayers at risk by reducing the amount turned over to Treasury coffers.