[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.

[tired&retired]

If you look at the increase in M1 and M2 it is obvious that they are printing money to purchase the National Debt.

[Owen]

That’s pretty good data, but the Fed balance sheet is $6T and dropping since QT is ongoing.

So the $37T debt accrues interest only on $31T, since the $6T is refunded (hmmm not 100% sure of that, some of the $6T may be MBS rather than gov’t paper). Regardless, if it was all gov’t paper, $31T at 3.5ish% composite interest rate is still over $1T in interest.

And you watch. When the debt ceiling debacle arrives soon, we will be told to celebrate $100B in spending cuts OVER TEN YEARS in order to authorize either a ceiling suspension of X years or a ceiling increase of something like $5T.