Part 1/8:
The Federal Reserve's Financial Dilemma: Understanding Its Losses
The Federal Reserve, often considered the backbone of the U.S. financial system, has recently found itself in a precarious position, losing tens of billions of dollars annually. With losses mounting since 2022, many are left questioning the implications of this trend and whether the Federal Reserve can rebound from its poor financial performance. This article aims to dissect the sources of the Fed’s financial losses, explain its money-making mechanisms, and explore potential future outcomes for this pivotal institution.