[Tell It Right]

Agreed. What the Fed does with their balance sheet (QE and QT) often has much more effect than their official interest rate decision.

[tired&retired]

They have been capping the rates by purchasing the excess, so it doesn’t move them into h8gher rates.

That’s why the Fed is sitting on a trillion dollars in unrecognized losses on government securities.

If you mark all the bonds held by the Fed to market value, the loss on paper is over $1 trillion. That’s more around 23 times the value of the central bank’s stated capital.

https://www.linkedin.com/pulse/federal-reserve-losses-top-200-billion-youre-hook-money-metals-jqcqe#:~:text=If%20you%20mark%20all%20the,crisis%20back%20in%20March%202022.