Andrew Levin on the Costs and Benefits of QE4 and the Future of the Fed’s Balance Sheet
Macro Musings with David Beckworth
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The Federal Reserve's Net Interest Income Over the Next 10 Years
The Federal Reserve bought $4 trillion worth of mortgage-backed securities in 2020 and 2021. The purchases were financed by reverse repos and bank reserves that are, as of two weeks from now, will be paying 3% on those liabilities. If Loretta Mester and others are right within another few months, the Federal Reserve is going to be paying 4% on these liabilities. Some members of Congress may be quite unhappy that they were not warned about this ahead of time or didn't have an opportunity to weigh in.
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