The Fed is sitting on $212B in losses over three years. That's what happens when you buy bonds at rock-bottom rates, then jack up interest rates to fight inflation.
They're paying more on reserves than they earn on their portfolio. Technically doesn't matter for central banks—they can print money—but it's a wild reminder of how expensive the inflation fight has been.
No immediate market impact, but it shows the cost of keeping rates higher for longer.
They're paying more on reserves than they earn on their portfolio. Technically doesn't matter for central banks—they can print money—but it's a wild reminder of how expensive the inflation fight has been.
No immediate market impact, but it shows the cost of keeping rates higher for longer.
