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WASHINGTON (MarketWatch) -- The Federal Reserve confirmed on Tuesday that it will return $46.1 billion in profits for 2009 to the U.S. Treasury. The Fed funds itself from its own operations and returns its profits to Treasury. The transfer was reported earlier by the Washington Post. The Fed's earnings are up $14.4 billion over 2008. The increase was primarily due to increased earnings on securities holdings during 2009 when the Fed lowered its standards and became the buyer-of-last-resort for the banking sector after the market dried up for many of asset classes in the wake of the financial crisis. The profit estimate is based on preliminary un-audited results. Final results will be presented in the Fed's annual report released later this spring
 
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