Question for knowledgable people: Does the Fed keep all of it's profits?

Question

An expert at Harvard refuted claims made by conspiracy theorists that the Fed gets to keep all it's profits. Apparently almost all of it is refunded back to the government treasuries at year end. Is this true? I wonder whether layman scholars have just misunderstood the complex nature of the real financial system and concocted theories based on false conclusions.

Answer 1

If you worked in the banking industry you would see these wild tales/conspiracy theories every day where people attend half baked seminars or internet scams to wiggle out of paying debt, taxes and everything else.  The government is in debt like everyone else and has been for decades.