What happens to the US debt if the Fed declares bankruptcy?
“What happens to the US debt if the Fed declares bankruptcy?”
1) The Fed can’t go bankrupt. It can be dissolved.
2) The national debt will still be there, just like it was in the 150 yrs prior to the Fed. Congress authorizes the debt, the Treasury sells the bonds to the public. They don’t need the Fed to do it, they will just use a big money center bank.