Fed raises rates by half a percentage point — the biggest hike in two decades — to fight inflation
https://www.cnbc.com/2022/05/04/fed-rai ... ation.html
The central bank’s holdings of nearly US$9 trillion in assets still allowed the Fed to remit US$32.2 billion to the US Treasury in the first quarter of 2022.
As the Fed raises its short term interest rate, it will do so by offering larger payments to banks for the reserves they deposit at the Fed, increasing the central bank’s expenses.
As its balance sheet shrinks, meanwhile, its interest earnings will decline, potentially pushing the Fed towards operating losses.
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