What a joke!
There is no such thing as the fed losing money. How can you lose money when you can make all you want?
If a real bank were to be that much in the hole there would be an immediate run on the bank, like it happened with Silicon Valley Bank last year. Is there a run on the Federal Reserve BANK?
And who are the depositors? Commercial banks. Do you see any of them pulling the money out of the fed? Of course not, they know they’re fully covered.
It’s all a charade!
They lose money when they earn 3% on their bonds while they pay banks 5% on their reserves. They also lose because those bonds are worth less.