Bernanke downplays credit risk on balance sheet (by Greg Robb)

WASHINGTON (MarketWatch) - Federal Reserve Board Chairman Ben Bernanke said the controversial $600 billion bond buying plan would not end up costing taxpayers. In remarks to the Senate Budget Committee, Bernanke noted that the Fed will remit $125 billion to the Treasury in 2009 and 2010, representing excess profits from the quantitative easing programs. Some analysts said the Fed could face severe losses on its portfolio if interest rates spike. In response, Bernanke said the "worst-case scenario" would be that the central bank would not make remittances to the government for a couple of years but this would be offset by revenues from a healthier economy.

WASHINGTON (MarketWatch) - Federal Reserve Board Chairman Ben Bernanke said the controversial $600 billion bond buying plan would not end up costing taxpayers. In remarks to the Senate Budget Committee, Bernanke noted that the Fed will remit $125 billion to the Treasury in 2009 and 2010, representing excess profits from the quantitative easing programs. Some analysts said the Fed could face severe losses on its portfolio if interest rates spike. In response, Bernanke said the "worst-case scenario" would be that the central bank would not make remittances to the government for a couple of years but this would be offset by revenues from a healthier economy.