Probably temporary, tweet support
To the extent that Fed remittances reflect balance sheet policy, they are profits on an interest rate bet that the Treasury can replicate if it wants to. Mnuchin has expressed a strong desire to do the opposite of that trade, by lengthening maturity, which you should consider in this context to be reverse-QE.
If balance sheet run-off and explicit maturity lengthening are too much for him, Mnuchin can adjust. It is up to him, especially if the Fed moves slowly via a passive run-down. Hell, Mnuchin can go full-retard QE by just issuing 100% bills. Fun fact: Former Treasury Secretary Summers has actually recommended that.
Away from the interest rate bet driver of remittances, higher short-term interest rates would lift, rather than reduce, pure seniorage. Rates going up slightly if the economy seems to need that is neither up to Yellen nor a drain on the budget.
Then there’s the big picture: there is a $2 trillion error in the budget, which is so egregious I did not get it, even when it was explained to me and even though I am a card carrying Trump hater. My eyes just refused to see that level of dumb. It is far more important than remittances, even on your wrong view of how they work.
“Obama regime”? Really? Stephen Stanley? Really?