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Where to Invest Your Cash Savings for Higher Yields

Money For the Rest of Us

CHAPTER

Is the Federal Reserve Insolvent?

The Federal Reserve was able to earn profits because they own trillions of dollars of government bonds and other bonds that are earning interest. That flowed to the government. The Federal Reserve is now paying 3.9% on reserve balances that commercial banks hold at the Federal Reserve. Now, does that flow through to its income statement? In other words, is the Federal Reserve insolvent? Potentially.

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