Excerpt:"Critics in Congress have expressed concerns that the Fed'sCongress is apparently concerned that 'the taxpayer is on the hook' for balances that Congress themselves have temporarily placed with the Fed (via payment of interest on US Treasury securites, interest on US Agency bonds, interest on US GSE MBS, etc....that the Fed holds) until the end of the year when the Fed has to just give it back, minus a few $billion for the expenses of the Fed staff and operations (nice!).
purchases could put taxpayers at risk by reducing the amount turned over to
Treasury. The Fed is funded from interest earned on its portfolio of
securities. It is not funded by Congress. After covering its expenses, the Fed
gives what is left over to the Treasury Department."
Apparently no one here stops to think about where the taxpayers would get the funds to 'get the Treasury off the hook', as if they ever would have to.
We may be at an all-time high as far as Fed remittances, but sadly at an all-time low as far as economic leadership in western civilization.