Yesterday, the Congressional Budget Office (CBO) released the report "The Budgetary Impact and Subsidy Costs of the Federal Reserve’s Actions During the Financial Crisis." The report describes how the Federal Reserve assumed a credit-providing function that market participants were unable or unwilling to perform and as a result assumed correlated risk from potential losses. According to the report, the Federal Reserve's primary liabilities have shifted from currency in circulation (approximately $814 billion in 2007) to reserves held by banks (approximately $1,022 billion at the end of 2009). CBO estimates that the fair-value of subsidies provided by the Federal Reserve during the financial crisis total $21 billion. The report notes, "In total, the fair-value subsidies that CBO has estimated [for Federal Reserve actions] are modest when compared, for instance, with CBO’s estimate of the $189 billion subsidy provided by the TARP at its inception." CBO estimates that remittances from the Federal Reserve to Treasury, which are recorded as revenues, will rise from $34 billion in 2009 to approximately $70 billion in 2010 and 2011, and then taper off to $41 billion in 2013. The higher remittances reflect the Federal Reserve's larger portfolio of assets. However, CBO notes that this estimation of near term remittances by the Federal Reserve is more uncertain that in the past given that the underlying assets are riskier than the Federal Reserve's traditional portfolio of assets.