A few days ago, the Fed announced that it had “earned” a record-high amount of money in 2009. Then it turned $46 billion over to the Treasury. Here we are in the midst of a serious recession, with the unemployment rate high, the housing market still in a slump, and the stock market making only small steps toward recovery. In this climate, the Fed is making profits.
That’s impressive, isn’t it? Unfortunately, the Fed’s huge earnings are a signal that the economy is still in terrible shape and that its condition is worsening.
Let us take a closer look at the Federal Reserve’s balance sheets
(Read more from mises.org)