February – New Losses for the Federal Reserve. It Just Keeps Losing Money

Losses of more than a billion dollars a week as of late.

Critical enough information that there is a whole section dedicated to tracking it here:

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Charts showing the Federal Reserve's accrued losses, by week, total, and average weekly loss in million from Sept 21, 2022 through Feb 1, 2023.  Averaged $1,225 (million) per week.  Cumulative loss is $26,959 (million).Data: FRED database; Graphics Econ-Intel

As of February 1st, 2023, the total accrued loss that the Fed must earn back before remitting additional funds to the treasury stood at $26.959 billion.  The Fed’s losses in recent weeks have continued at a rate similar to the prior several weeks.  Since the beginning of December 2022, only one weekly loss has been less than a billion dollars. The week ending December 27th 2022 resulted in a loss of $780 million. The largest loss since then, approached $2.5 billion. The week ending January 4th 2023 weighed in at a hefty $2,456 million.  February 1st, 2023 marked the 20th consecutive week of losses for the Fed, since the Fed’s earnings remittances due to the U.S. treasury account plunged negative.

Fed Losses: the Fed is Losing Money, provides an in depth look at the Fed’s losses. Including examining and explaining their balance sheet. If you want to understand the significance of the Fed’s losses and what is at risk, we recommend How Much Can the Fed Tighten?  The Fed’s losses and other forces are combining to erode the Fed’s ability to fight inflation.

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