Fed faces years of losses as interest rates rise

US Federal Reserve, Washington, DC

The US Federal Reserve is set to face years in which it suffers losses due to the effects of interest rate risk stemming from its hefty asset holdings.

The balance sheet peaked at a size of $8.97 trillion in April and has shrunk only slightly since then as quantitative easing unwinds, declining to $8.9 trillion on July 11. By purchasing bonds during the Covid-19 crisis, the Fed brought interest rate risk onto its balance sheet, helping to stabilise markets, cut government borrowing costs and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: