Alex Pollock’s important article in the New York Sun on the Federal Reserve’s staggering losses.
From the article:
These operating losses are not, as is sometimes mistakenly said, mere “paper” losses. They are real, cash losses. The Fed is suffering negative net interest income because its cost of funds is much greater than the income on its investments. The $193 billion in operating losses exceeds the Fed’s $43 billion in total capital by more than four times.
Read the full article here.