The Public Might Not Realize This About the Federal Reserve...
When the Federal Reserve buys debt securities it does so with money it creates out of nothing. Heritage Foundation Research Fellow E.J. Antoni tells Natalie Winters that the Fed then uses that money to buy an asset that will essentially provide it with an income. But what it is supposed to do is turn that income over to the Treasury (something called remittances). For the past few years, though, those remittances have essentially gone away. Antoni said that not only have they gone to zero, they've now gone to negative $100 billion.
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