The Fed's Balance Sheet Expansion

The Fed is holding on their balance sheet right now. Remittances due to the Treasury is Fed profits that they feed back to the US Treasury for use in general spending. If they have a losses those losses just sit on the bet on the feds balance sheet which is central bank balance sheet expansion. That manifests somewhere as inflation so you're paying for it in this indirect tax of inflation Ultimately and I think Dylan's right that these underwater securities these US Treasuries that were 1% yield we're not going to go back to that So they're going to be underwater indefinitely.