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Record 2014 income on Fed portfolio seen dropping

NEW YORK, April 7 (Reuters) - The record $106-billion in net income on the Federal Reserve's portfolio of assets last year is seen dipping to a third of that size by 2018, according to an annual report by the New York Fed.

The New York Fed's projections, based on bond market assumptions and surveys of primary dealers, see net income falling to about $35 billion by 2018, with the portfolio reaching an equilibrium size by the end of 2020.

Annual remittances to the U.S. Treasury, which also hit a record last year, are seen declining along with net income.

(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)