The Federal Reserve is facing significant financial challenges, with approximately $1 trillion in paper losses due to underwater securities and $517 billion in unrealized losses by commercial banks in the United States. Additionally, the Federal Reserve now owes the U.S. Treasury approximately $170 billion. In the past, the Fed was profitable and contributed billions of dollars per year to the Treasury. However, due to various programs aimed at stabilizing the banking system, the Fed is now incurring substantial losses, totaling $175 billion so far.
π₯π₯NEW FROM π§ The Canadian Federal government now directly, or indirectly, owes 1.7 Trillion dollars. The Federal Borrowing Authority Act only allows the government to borrow up to $1.8T Minister of Finance Freeland is now asking to up the limit https://t.co/WSUGZytD49
NEW The Federal government now directly, or indirectly, owes 1.7 Trillion dollars. The Federal Borrowing Authority Act only allows the government to borrow up to $1.8T Guess what happens next? https://t.co/WwTz43sVcA
The Fed used to be profitable and send billions of $$$ per year to the US Treasury. Now the Fed has so many bandaid programs to hold the banking system together, it hemorrhages billions of $$$ paying commercial banks for reserves and reverse repos. $175 billion in losses so far https://t.co/lcFRWwO9O9
BREAKING π¨: Federal Reserve The Federal Reserve now owes the U.S. Treasury approximately $170 billion https://t.co/UT7E3dffZi
Sad facts: - The Federal Reserve has roughly $1 trillion in paper losses due to its underwater securities. - Commercial banks in the United States have unrealized losses of $517 billion. Years of cheap money have created the distorted reality we see today. Get used to it.