Wow... the Fed had been sending earnings of ~$6B a month to the US Treasury, until August 2022. In August they were worried about inflation, and raised interest rates, meaning they started paying more interested on deposited money, eating into their earnings.

But inflation! It had to be done!

So now they write off ~$10B in losses per month, and won't be paying Treasury anything until that loss is recovered. That's right: because of their own decisions, they're effectively never going to pay the US government anything, ever again. Current losses are ~ $216.6B and growing.

Reply to this note

Please Login to reply.

Discussion

No replies yet.