Federal Reserve "Bank" posts largest operating loss ever

Hey citizen!  What do you make of the graphic above?  Even brain-dead Democrats can see that all the blue bars except one--for 2023--are above the line.  But the bar for 2023 is way, WAY below some silly, meaningless line.

Whut dat mean, eh?

Dem "leaders:"  "Don' mean nuffin'!  Dis fake newz!  Hey, didja hear about Taylor Swift!"  

Dem-fellating Media: "Yeah, whut dey said!  And if it's bad, it's Trump's fault!"

Nice try, assholes.  It's from the Wall Street Journal, in an article reporting an unprecedented LOSS by the Federal Reserve Bank. 

How the hell does the Fed lose $114 BILLION in a single year?

The Journal "explains."  Kind of...

The Federal Reserve had an operating loss of $114.3 billion last year, its largest ever, a consequence of its campaign to aggressively support the economy in 2020 and 2021, then jacking up interest rates to combat high inflation.
The losses added to already large federal deficits that have required bigger auctions of Treasury debt.  The central bank’s losses could continue for as long as short-term interest rates remain near current levels. That has the potential to fuel new political attacks on the Fed....

The central bank paid more to financial institutions on interest-bearing deposits and securities than it earned from securities that it bought when interest rates were lower. That’s a result of it raising its benchmark short-term interest rate to a two-decade high, above 5%, last year.

How do they define "securities," eh?  That typically means stocks.

The losses won’t require the central bank [the Fed] to ask for an infusion from the Treasury Department.

An "infusion," y'say.  That sounds like gobble-speak for a government bailout.  But the Powers can't call it a "bailout," cuz that might make voters think something shady was going on. 

Unlike federal agencies, the Fed doesn’t have to go to Congress hat in hand to cover operating losses. Instead, the Fed created an IOU in 2022 that it calls a “deferred asset.”

Wow, sounds like a total fraud!  "See, we had dis loss, but instead of getting a gruberment 'infusion' we jus' wrote an IOU fo' $114 billion to ourselves!  You cain't doo dis but we can, cuz we smaht--and really connected--an' you ain't.  So all guud, eh?"

The Fed has almost always turned a profit and is required by law to send its earnings, minus operating expenses, to the Treasury. Those gains turned to losses in 2022, meaning the federal deficit has been a bit larger than it would otherwise have been.

"A bit," y'say?  Amazing how, when it's a Democrat regime, $114 BILLION becomes trivial--"a bit."  Wow.  And earlier you tried to make this Trump's fault by saying "2020."  But now you admit the losses were in 2022.  Hmmm...  All just "an error," we're sure.

During the first nine months of 2022 the Fed transferred $76 billion in earnings to the Treasury. In September of that year, it began running a loss, and it ended the year recording a $16.6 billion "deferred asset."

"deferred asset," y'say.  Oh dat right: bafflegab for "loss," which you covered by writing an IOU that you call a "deferred asset."  Magic!

Until 2022 the Fed had never in its 109-year history suspended remittances to the Treasury for a meaningful period due to operating losses.

"Never in its 109-year history," y'say.  Hmmm.  Say, you don't think this has anything to do with that supposedly faaaabulous economy under Porridgebrain, do ya?  Dat fabulous "bidenomics" they keep fellating?

The Fed’s deferred asset [again, gobble-speak for "loss"] grew by $116.4 billion last year, bringing its cumulative total to $133 billion. When the Fed is no longer running losses, it will pay itself back first [what a shock!] and extinguish the deferred asset before resuming remittances to the Treasury.

"Extinguish the deferred asset," y'say.  No normal person reading this utter baffle-gab could tell what's really happening--which is exactly what the cunning bastards who wrote this shit intended.  The Fed will pay itself back for the IOU that it wrote to itself when it lost $114 BILLION.  Sweet.

Fed losses are a side effect of its efforts to support the economy during the Covid-19 pandemic by purchasing large amounts of Treasury and mortgage-backed securities.

"Mortgage-backed securities," y'say?  Wow, sounds like the Fed is buying stock.  That's a sweet deal for the cartel they're buying from, eh?  Keeps dere stock price high!  But how does the Fed choose which to buy?  Who decides?  "Don't worry your head about dat, deplorable!  It's all, like, totally transparent and legitimate!  Reeeally!  Trust us!"

The market value of those securities dropped after the central bank began raising rates aggressively in 2022 to combat inflation, but the Fed doesn’t book losses on them because they are held to maturity.

If it doesn't "book" losses, what caused the stated loss in 2023?  Dey about to tell us...kinda.

Instead the Fed is running losses because it's paying more in interest than it earns on those securities.  Beginning in September 2022...

Remind us again, who was prezzy then?

...the overnight rates the Fed pays to banks on their deposits held at the Fed, and on other securities transactions it conducts to manage interest rates, exceeded the income it collects on its $7.1 trillion in security holdings.

Those holdings consist primarily of Treasury and mortgage-backed securities that it accumulated during bond-buying stimulus programs between 2009 and 2014 and again between 2020 and 2022.

So those "stimulus programs" just happened to be during Obozo's 2008 to 2016 reign, and again during Porridgebrain's reign, but by total accident were NOT happening from 2016 to 2019.  Say, anyone recall who was president then?  Just total coincidence, surely. 

The Fed is likely to continue running accounting losses [see, deez not reel losses] for as long as it holds interest rates above around 3.5% and shrinks its asset portfolio, a process that began in 2022.
   Elected officials in Washington have said little...

 You don't say.  You. Don't. Say.

The central bank [Federal Reserve] maintained a relatively small portfolio until the 2007-09 financial crisis, after which its holdings of Treasurys and mortgage bonds swelled...

Remind me again: Who was prezzy from 2008 to 2016?  Fed decides to buy trillions of dollars of bonds then...why?  You don't suppose it was to make Obozo's economy look great, do ya?

But don't fret, citizens: Media assure ya dis all fake news.  Wall Street Journal don't know nuffin'.

Source. 

https://www.wsj.com/economy/central-banking/fed-posts-largest-ever-annual-operating-loss-6e249a39?mod=djemalertNEWS