Mises Wire
Author:
Paul H. Kupiec
Alex J. Pollock
Online Publish Date:
Introduction Among Federal Reserve officials and many economists, it is fashionable to argue that any losses the Federal Reserve should suffer, no matter how large, will have no operational consequence. Is this true? If so, how does the Fed account for its losses and stay solvent? And who ends up paying for these losses? As the Fed executes its