Just Released: Updated SOMA Portfolio and Income Projections
The Federal Reserve Bank of New York’s Markets Group today published a report presenting updated staff projections [LINK TO REPORT] for the future path of domestic securities held in the System Open Market Account (SOMA) and portfolio-related income. The updated projections incorporate very recent information and are provided as a tool for the public to further understand factors affecting the evolution of the Federal Reserve’s balance sheet.
More Than Meets the Eye: Some Fiscal Implications of Monetary Policy
In 2012, the Fed’s remittances to the U.S. Treasury amounted to $88.4 billion.
What If? A Counterfactual SOMA Portfolio
The Federal Open Market Committee (FOMC) has actively used changes in the size and composition of the System Open Market Account (SOMA) portfolio to implement monetary policy in recent years.
A History of SOMA Income
Historically, the Federal Reserve has held mostly interest-bearing securities on the asset side of its balance sheet and, up until 2008, mostly currency on its liability side, on which it pays no interest.
The SOMA Portfolio through Time
The System Open Market Account (SOMA) is a portfolio held by the Federal Reserve to support monetary policy implementation and reflects assets and liabilities (domestic, and some foreign) acquired through open market operations.