Bill English on the Effectiveness of QE and the Consequences of Fed Losses
Macro Musings with David Beckworth
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What Would Happen if the Fed Had a Loss?
The Fed doesn't mark-to-market its securities. It would only book that loss if it had a sale. But otherwise, it does it on a flow basis, looking at the flow of income and the flow of expense. So there isn't a big problem for the Fed in the sense that it doesn't become insolvent or whatever. The Treasury is not getting remittances anymore, that it was getting before it.
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