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A Failing Federal Reserve

Last updated on April 8, 2023

The Federal Reserve has lost more money than it had in reserve. It has lost $44 billion, which is more than the $42 billion it had in reserve, leaving it with negative $2 billion. This loss is happening every month, and it is expected to continue for some time, especially if interest rates stay the same. The Fed adds up its losses as a negative liability instead of taking it from its reserve. This situation is not good for the world’s top central bank, and the losses have become a financial burden on the American government. Its actions have also led to the banking system being at risk. As a result, it seems like the banking system has almost no capital, and the central bank has negative capital.

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