Part 4/8:
How does the Federal Reserve make money if it merely prints currency? Like any bank, the Fed has both income and expenses. The Fed generates income primarily through interest payments on the assets it holds, which include U.S. Treasuries and mortgage-backed securities. When holding over $6.5 trillion in assets, the Fed earns interest. For example, 10-year U.S. Treasuries currently yield around 4.2%, contributing to its earnings.