Fed carrying $330 billion in unrealized losses on its asset according to Q1 financial statement
2022.05.27 23:20
FILE PHOTO: The Federal Reserve building is seen before the Federal Reserve board is expected to signal plans to raise interest rates in March as it focuses on fighting inflation in Washington, U.S., January 26, 2022. REUTERS/Joshua Roberts
WASHINGTON (Reuters) – The U.S. Federal Reserve is carrying $330 billion in unrealized losses on its holding of U.S. Treasury and mortgage-backed securities as of the end of March, according to newly released financial statements showing the impact of rising interest rates on the market value of the Fed’s balance sheet.
The central bank’s holdings of nearly $9 trillion in assets still allowed the Fed to remit $32.2 billion to the U.S. Treasury in the first quarter of 2022, according to the documents. The New York Fed earlier this week flagged the potential for unrealized losses hitting the Fed’s balance sheet, but said it did not impact the central bank’s ability to set monetary policy.
