[Lurker]

If interest rates rise, the value of long dated bonds falls. If the Fed has to "mark to market" their positions, but still pass along all interest to the Treasury, their capital will be reduced.

That would be too bad. It would be shocking, shocking I tell you, to expect a private institution like the Fed to be treated like any other investor.

Most everybody else has to 'mark to market' their positions. If it's good enough for everybody else, it's good enough for the Fed.

[Toddsterpatriot]

It would be shocking, shocking I tell you, to expect a private institution like the Fed to be treated like any other investor.

The Fed isn't a private institution.

Most everybody else has to 'mark to market' their positions. If it's good enough for everybody else, it's good enough for the Fed.

They should mark their gold at the market price. $350 billion instead of $11 billion.