Higher Rates Raise Risk of Future Fed Losses
Share this @internewscast.com



The Federal Reserve’s plans to raise interest rates aggressively to combat high inflation could have an overlooked and uncomfortable side effect for the central bank: capital losses.

The potential for losses hinges on obscure monetary plumbing. The Fed’s $9 trillion portfolio, sometimes called a balance sheet, is full of mostly interest-bearing assets—Treasury and mortgage-backed securities—with an average yield of 2.3%. On the other side of the ledger—the liability side of the Fed’s balance sheet—are bank deposits held at the Fed known as reserves, which are also interest bearing, as well as currency in circulation.

Share this @internewscast.com
You May Also Like

Ukrainian Artillery Is About To Get A Lot More Accurate

Ukrainian defense ministry photo It’s official. The United States has provided, or…

Pending Home Sales See Surprise Rebound In May But Experts Warn Housing Market Is ‘Undergoing A Transition’

Topline A leading indicator for housing market activity—pending home sales—unexpectedly jumped in…

Nike Posts Flat Sales, Jump in Inventories

Nike Inc.’s quarterly sales were roughly flat and its inventory surged, signs…

Today’s ‘Wordle’ #374 Answer And Hint: Tuesday, June 28th

Here’s today’s Wordle #374 answer plus a helpful hint. AFP via Getty…

Snapchat Parent Launches Monthly Subscription Plan

Snap is launching a subscription plan that unlocks exclusive features on the…

The SEC’s Chair Makes Game-Changing Crypto Statement As Price Of Bitcoin, Ethereum, BNB, XRP, Terra’s Luna, Solana, Cardano, Dogecoin Turn Mixed

Uncertainty continues to torment crypto investors. After last week’s dip, the crypto…

Dow Plunges Nearly 500 Points, Recession Fears Resume As Consumer Confidence Hits New Low

Topline Stocks fell for a second day in a row on Tuesday…

Crypto more popular among millennials than mutual funds, survey shows

A report published by investing firm Alto surveyed adults based in the…