Federal Reserve Is Technically Bankrupt

The Federal Reserve purchased large amounts of government bonds and mortgage bonds to support the economy and financial markets during the COVID crisis, which has led to concerns that it is technically bankrupt.

Behind closed doors, the report is already making the rounds in expert circles: if you follow the rules of sound commercial accounting, the United States Federal Reserve (Fed) has lost its equity and is, as common language would have it, bankrupt. What happened?

During spring 2020...

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