QT is effectively over and the Federal Reserve still holds a massive money losing portfolio. The claim is that they would normalize but not happening. Fed operating losses in 2024 was 77.6B, after losing $114.3B in 2023. They now just send the tab to Congress.
Powell slipped in today that they are cutting their Treasuries QT from $25 billion to $5 billion a month, which is a joke (they still own $4.242 Trillion of UST, plus $2.2T of MBS!)
At this rate it’d take 54 years to get Treasury holdings down to Bernanke’s 2010 target. pic.twitter.com/FcXyLrRG9n
— Rudy Havenstein, Senior Markets Commentator. (@RudyHavenstein) March 20, 2025
BREAKING 🚨: Federal Reserve
Federal Reserve lost $77.6 Billion last year and has now lost a combined $192 Billion over the last 2 years 👀 pic.twitter.com/r7faQHFEI5
— Barchart (@Barchart) March 23, 2025
How in the world can you print the currency, borrow it (at interest) from yourself, then pay it off with someone else’s (taxpayer’s) money ? As Yakov Smirnov used to say: “What a country !”