Fed’s Income Statement & IOER

Fed’s income comes mostly from interest income on their assets: treasury and MBS.  Fed expenses are IOER, opex, and remittances to the Treasury.  You can see their income statement here, second table on the page:

https://www.federalreserve.gov/monetarypolicy/quarterly-report-20160930.htm#CombinedQuarterlyFinancialStatement-5426DEBD

The important bits (from column “three months ended Sep 30, 2016”):

1. Interest Income: $27.3 billion
2. less Interest Expense (IOER @ 0.5%): $3.3 billion
3. less Operating Expense: $1.6 billion
4. equals Net Income before Remittance: $23.1 billion
5. less Remitted to Treasury: $23.0 billion
6. equals Net Income: $151 million.