Bill Nelson on the Fed’s Discount Window Lending, the Overnight Reverse Repo Facility, and the Shifting Size of the Fed’s Balance Sheet
Macro Musings with David Beckworth
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The Fed's Negative Income Earnings
The Fed's reserves stand just over 3 trillion 3.4 trillion and the overnight reverse repo facility at 2.63 so between 5 to 6 trillion we have these liabilities that pay interest their short term their overnight. Bill you and any 11 had a nice little policy brief for us where you noted these losses are taking place and they are ultimately born by the tax payer. Even though it doesn't affect the conduct of monetary policy currently it's still something that one would think about in terms of should taxpayers be aware that this is happening. The Fed engaged in QE of course in the mid 2010s and interest rates ended up much lower than anyone expected and so they made money but again the Fed
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