Reported 7 months ago
The Federal Reserve has incurred over $1 trillion in paper losses, leading to more than $100 billion in actual losses with no relief in sight. Fed Chair Powell cited that despite easing inflation, interest rates would not be lowered from their current high. The longer rates remain elevated, the more challenging it becomes for the Fed to repair its balance sheet, potentially resulting in annual losses of about $100 billion for years to come. The article delves into the background of the Fed's losses, the impact of the COVID era, and the potential risks and solutions ahead.
Source: YAHOO