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> Why does this reduce the amount of funds to the treasury?

It's an accounting thing [1]. When the Fed makes a profit, it remits it to the Treasury [2]. (I believe this is an anachronism from the gold standard days, but not sure.)

[1] https://www.stlouisfed.org/on-the-economy/2018/september/fed...

[2] https://www.wsj.com/articles/fed-sent-88-5-billion-in-profit...




Oh neat, TIL. Thanks




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