Fed Losses

Articles with this tag provide analysis regarding Fed losses.  Articles examine how much money the Federal Reserve is losing. As well as the reasons for the losses and their impact on policy.

Addresses important concerns:

• Will the Federal Reserve go bankrupt?
• Is the Fed out of money?
• Will the Federal Reserve become insolvent?
• What do these losses and the fact that the Fed is losing money mean and how will they impact the economy?

Additionally, it provides details on the losses, covering trends and statistics: 

• Provides the total cumulative Fed losses to date.
• Provides the average weekly loss.
• Provides the number of consecutive weeks of losses.
• Provides recent history of Fed losses.

Furthermore, the articles also discuss the policies that caused the Fed losses.  The article analyzes the challenges the Federal Reserve’s losses pose to policy moving forward.  The articles discuss potential policy solutions.

Another important element provided is an examination of the Federal Reserve balance sheet.  The article provides readers with a basic overview of the Fed’s balance sheet and will understand how various accounts affect the amount of money that the Fed is losing.  Additionally, the article explains the creation of a deferred asset account.  As well as both how this treatment is specific to the Fed and potential policy implications.

Also provided are links to other resources to provide additional detail and greater understanding regarding the topics covered in the article. This should allow the reader to explore and understand the topic even more deeply than covered in the individual article.  Allowing the reader to understand the threats, policy, and effects on the Federal Reserve balance sheet.

Finally, the article provides discussion of the risks to the U.S. dollar resulting from the Fed losses. Three primary threats exist:

• Confidence in the dollar.
• Limitations to the Fed’s ability to tighten the money supply.
• Reduced remittances to the U.S. treasury.

Coverage is provided of each of these risks, examining both the implications of policy and potential policy to mitigate them.