Sure, the Federal Reserve made $80 billion last year. But that’s down $12 billion from last year and almost $20 billion from two years ago. What exactly does the central bank think its job is? Holding the economy’s hand or making bank? Clearly, given the interest rate hikes that are costing it an arm and a leg, and the decision to start selling off its portfolio, it’s the former. SAD.
Not that they’re doing a great job, anyway: Even if you don’t count the $14 billion the Fed gave away to banks via those higher interest rates, it’s still only making like 2% on its $4 trillion portfolio. And let’s not forget that incoming Fed chair Jerome Powell has been complicit in all of this.
Now, Thomas Jordan: There’s a man who knows how to turn a buck (well, franc) at a central bank.
The Swiss National Bank said Tuesday it expects to report a record annual profit of 54 billion Swiss francs ($55 billion) for last year—a staggering sum equal to 8% of the country’s gross domestic product. By comparison, if the Federal Reserve were to run a profit of similar scale relative to the U.S. economy, it would be about $1.5 trillion.
Now, that’s a big, beautiful number. Big and beautiful enough that even the president can understand it. So before the Senate gets around to making Powell official as Fed chair, President Trump needs to buttonhole Jordan at Davos and get him on Team MAGA. Who better to put America First than some Swiss guy?
Fed Sent Roughly $80.2 Billion in Profit to U.S. Treasury in 2017 [WSJ]
Switzerland’s Central Bank Made $55 Billion Last Year—More Than Apple [WSJ]
Trump Plans to Attend the World Economic Forum in Davos [NYT]