The Fed has almost 9 trillion on it’s balance sheet, but now they MUST fight inflation. The Fed has been purchasing Treasuries & MBS’s in order to keep interest rates from swallowing our government whole…thanks to out of control spending - COVID being the latest boondoggle.
Now, the Fed has decided to raise rates and lower their balance sheet. At the end of 2021 the annual interest owed by The Treasury Dept was $306 billion. Six months later…$399 billion. Just imagine the end of this year…by end of 2023!!!!
The Fed is between a rock & a hard place!!! Those of us with a lick of sense saw this coming…Basic Economics & Common Sense.
Oh yeah…for the brilliant economic guru “shutdownists”…this means a larger deficit, more borrowing, higher interest payments, etc., etc., etc.
Now, the Fed has decided to raise rates and lower their balance sheet. At the end of 2021 the annual interest owed by The Treasury Dept was $306 billion. Six months later…$399 billion. Just imagine the end of this year…by end of 2023!!!!
The Fed is between a rock & a hard place!!! Those of us with a lick of sense saw this coming…Basic Economics & Common Sense.
Oh yeah…for the brilliant economic guru “shutdownists”…this means a larger deficit, more borrowing, higher interest payments, etc., etc., etc.
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