The fed makes it's money through four processes:
1.) Providing loans for banks at interest.
2.) Providing certain services for banks.
3.) Buying Treasuries, or other words, government debt.
4.) Using all of that interest, they invest in foreign exchange markets.
The Fed also recently, or is going to, receive large amounts of interest of loans it dished out in 2008 during the financial crisis. The total amount of bailouts was about 17 trillion dollars worldwide, and they do that through credit creation. I am unsure people realize how asanine the mount of money The Fed owns. The exchange markets work off of ratios, and I'm sure they have the money to hire some mathematician to lay out equations to maximize profit. I mean, mathematicians have quantum mechanics, I'm sure they can optimize ratios. Program it, put it in a datacenter, and you have a computer program continually maximizing interest.
The four responsibilities of the Fed are as stated in The Federal Reserve Act:
www.federalreserve.gov
Do I need to put 2 and 2 together, considering Bernie's stance on policy? Here's the kicker, a lot of people say The Fed is a private institution, and that is half fair. The President has no power, but we all know currently people disregard the constitution, over The Fed and its practices.
However, the US Congress has the authority over The Fed.
Considering Bernie, and the possibility, not saying likely, that Democrats overtake the senate, we could tap into the wealth of The Fed for the betterment of the people.