The Federal Reserve is Running Losses. Who's Paying For It?

The US Federal Reserve is facing significant operating and capital losses, raising concerns about its financial stability. These losses, potentially as high as $100 billion, are due to high-interest rates impacting its bond portfolio and increased expenses. There is a growing debate about who will bear the cost of these losses, with many analysts suggesting that American taxpayers may ultimately be responsible. This situation underscores the potential financial burden on US taxpayers due to the Fed’s current financial challenges.