Why the Fed won't go bankrupt even if it has a deficit #2
table of contents
✅ Interest payments on bonds held by financial institutions
✅ Interest payments accrued from transactions with financial institutions
✅ Replenishment of government deposits
The Federal Reserve recorded the largest deficit ever of 114.3 billion dollars in the 2023 financial results
I was wondering if that was OK, so I'm creating an illustration
Let's take a look at the effects of interest rate hikes and QT from the inside.
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