The Federal Reserve is losing over $1 billion every week and you're on the hook.
The Fed eral Reserve is losing over $1 billion every week and you're on the hook. Since September 2022, the central bank has reported losses of around $176.4 billion. If it was a real company, it would be considered bankrupt. Fortunately for the Fed , it gets to make up its own accounting rules. Unfortunately for you the taxpayer, you're going to pay for the central bank's losses. Why is the Fed losing so much money? It's a function of interest rates.
And who pays for budget deficits? Ultimately, you do. Bigger deficits mean Congress either has to raise taxes, or the Treasury must borrow even more money. Either way, taxpayers pay. They either get a bigger tax bill, or they pay for the borrowing via the inflation tax when the Fed prints money to monetize the debt. Meanwhile, it’s business as usual over at the Eccles Building. For a normal business, bleeding red ink is bad news. Big losses force managers must take drastic measures.
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