2013-02-28 — bloomberg.com
``The paper's authors worry that the Fed will realize losses on the assets it has bought, and this will have implications for the government's budget through lower Fed remittances to the U.S. Treasury. Bernanke said that the Fed had looked at this, and that remittances could be "quite low for a time in some scenarios, particularly if interest rates were to rise quickly." Even then, however, he said that remittances would remain higher than the historical average. In a situation where remittances were cut by rising interest rates, he also said, the economy would be stronger -- that's why interest rates would be rising -- and this would reduce the government's budget deficit by far more than the fall in remittances would increase it.''
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