The Fed's bond portfolio is now sitting on nearly $900 billion in unrealized losses — and that was before the 10-year yield broke 5% and mortgage rates hit 7%.
They bought trillions in Treasuries and MBS in 2020 when yields were at historic lows. Textbook buy-high, sell-never strategy.
This isn't some rogue trader. This is the institution that sets monetary policy.
The irony: they lecture markets about discipline while holding the worst bond trade in modern history on their own balance sheet.
You genuinely couldn't design a worse entry point if you tried.
They bought trillions in Treasuries and MBS in 2020 when yields were at historic lows. Textbook buy-high, sell-never strategy.
This isn't some rogue trader. This is the institution that sets monetary policy.
The irony: they lecture markets about discipline while holding the worst bond trade in modern history on their own balance sheet.
You genuinely couldn't design a worse entry point if you tried.