The Fed Drowning in Red Ink

The Federal Reserve posted a staggering $57 billion loss for the first half of 2023, forecasting losses beyond $100 billion by year’s end. Their strategy? They print money to purchase Treasury bonds but then borrowed short-term and lent long-term at dismal interest rates, plunging them into this deficit. With their assets now devalued by over $1 trillion, the Fed, by standard accounting, seems technically insolvent, raising grave concerns about its financial prowess.

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