Macro Musings with David Beckworth cover image

Bill English on the Effectiveness of QE and the Consequences of Fed Losses

Macro Musings with David Beckworth

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Is the Fed Having Unrealized Losses a Problem for Treasury?

The market seems OK with what the federal government is doing right now, even though we run deficits and such. So it would be very hard to ever get to a point where the Fed could not conduct monetary policy given the expected income streams coming to the federal government into the Fed itself. But that leads us to the next question: Do these losses pose a problem for Treasury and the taxpayers? And you have a nice set of any like multiple answers to this question.

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