>>19951087we don't need to borrow the Fed's private currency anymore
the Fed is now fucking bankrupt and has been since Oct 2022
The Fed is now paying out more interest on treasuries to banks and interest on reverse repos to MMFs than the revenue it is generating from its US treasury (debt) and MBS holdings.
The Fed will now treat these losses as a new imaginary accounting category called “deferred assets” and not include them when tallying the deficit at the Treasury.
The Fed is also trying to blame this failure (pic related) on having to pay for the CFPB, but the CFPB annual budget is only $half a billion ($500M).
The Federal Reserve also says their privately-incorporated 12 regional Fed branch franchises (mostly the NYFed) can no longer afford to pay for their Regional Fed branches’ operating expenses and the Fed will not remit any money to the US Treasury until they are paid up for their ‘deferred assets’.
Pic fucking definitely related (update to ~$150 Billion in the hole)
