Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Lose Money On Interest
Central banks are record profit-makers, but that model is fracturing. With the Federal Reserve and European Central Bank holding massive balance sheets while paying high interest on reserves, the math is breaking. We look at why the Fed’s $70 billion annual loss matters for policy independence, how it changes the dynamic with Treasury, and what happens when the world’s most powerful institution starts asking to be paid back.
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