<P> For the quantitative easing policy, the Federal Reserve holdings of U.S. Treasuries increased from $750 billion in 2007 to over $1.7 trillion as of end - March 2013 . On September 13, 2012, in an 11 - to - 1 vote, the Federal Reserve announced they were also buying $45 billion in long - term Treasuries each month on top of the $40 billion a month in mortgage - backed securities . The program is called QE3 because it is the Fed's third try at quantitative easing . The result is that an enormous proportion of the US debt is actually owed from the Treasury to the Federal Reserve; according to a 1947 law, the Federal Reserve must return this money to the Treasury each year, after expenses . </P> <P> After the Federal Reserve buys Treasury securities on the open market as part of the QE program (as it is prohibited from buying them directly from the US Treasury at auction), the Federal Reserve receives its interest thereafter, instead of the private sector seller . The amount of that interest payment is thereby removed from the economy . In 2012, the Federal Reserve collected nearly $82 billion in interest profit from its treasury securities purchases . (Page 302 of the 2013 "100th Annual Report") After expenses (district Federal Reserve property taxes, salaries, facilities management, dividends, etc .), it returns all money to the US Treasury . </P> <P> In 2013, the Federal Reserve earned $91,149,953,000 . It paid the US Treasury $79,633,271,000, not including the $701,522,000 it paid Treasury's Bureau of Printing and Engraving to create walking - around physical cash and currency . (Page 302 of the 2013 "100th Annual Report") </P> <P> As of June 30, 2016, the foreign holders of at least $150 billion of U.S. Treasury securities are: </P>

United states treasury bills at the time of issue are