The Federal Reserve manages interest rates — and therefore the economy — through its balance sheet, which is filled with things that make the Fed money (assets) and things that cost it money (liabilities).
For the last 15 years, it’s made money from these assets. In 2021, its earnings totaled $107 billion. But now it’s actually losing money. Thanks to the central bank’s own policies.
WSJ explains how the Federal Reserve makes money off of its balance sheet, why it’s not now, and what happens now that it's in the red.
Read more about the Federal Reserve’s losses on The Wall Street Journal: [ Ссылка ]
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The Fed Is In the Red. Here's Why. | WSJ
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