Reported 3 days ago
The U.S. Federal Reserve has reported paper losses surpassing $200 billion, marking a significant financial challenge due to its aggressive monetary policy aimed at combating inflation. The central bank's deficit, recorded at negative $201.2 billion, affects its ability to remit earnings to the Treasury until it addresses this shortfall. This loss arises from the costs associated with high interest rates set between March 2022 and July 2023, surpassing the income earned from its bond holdings.
Source: YAHOO