The Fed Is In the Red. Here's Why. | WSJ

The Federal Reserve manages interest rates — and therefore the economy — through its balance sheet, which is filled with things that make the Fed money (assets) and things that cost it money (liabilities).

For the last 15 years, it’s made money from these assets. In 2021, its earnings totaled $107 billion. But now it’s actually losing money. Thanks to the central bank’s own policies.

WSJ explains how the Federal Reserve makes money off of its balance sheet, why it’s not now, and what happens now that it's in the red.

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#Fed #FederalReserve #WSJ

[erichkraetz]

Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.

[bruceconnor]

Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $400k portfolio is down by approximately 20 %, any recommendations to scale up my ROI before retirement will be highly appreciated.

[composedcapital]

I appreciate videos like these, thanks WSJ

[BiodieselRocket]

This would make a lot more sense if a printer sound was playing in the background during all of this.

[tomjason]

I will forever be indebted to you you’ve changed my whole life I’ll continue to preach about your name for the world to hear you’ve saved me from a huge financial debt with just little investment thanks so much Amy Priscilla Raskin

[graceocean]

This administration has failed us. No one cares thats why we gotta safeguard ourselves. Although I don't know any yet, investing with the help of a seasoned coach I read is a really good technique to create passive income. However, my portfolio contains about $570K in Adobe/Fedex/TSLA stocks. Can you give me some ideas on other equities I should buy in order to spread my savings among different markets and build a well-rounded portfolio that balances my risk aversion concerns with returns that keep up with inflation?

[njugunamaina]

Everyone: Magic isn't real. You can't make something out of nothing
The Fed: 👀 👀 💸💸

[gerdajmaritz]

I was at the gas station and noticed a car full of belongings and a lady with her dog. I gave her $20 and she just started bawling and was extremely grateful. When I was in my 20's I was homeless for 2 months and lived in my car. I know how it feels to be in that situation.

[MrSupernova]

Finally, a WSJ video of some quality. I get that WSJ is trying to appeal to the masses but at least we got some value out of this video. Now, let's try stepping it up another notch.

[erico]

Maintaining perspective while trading requires setting reasonable goals. Going hard in the markets helped me personally pay off $240, 000 in debt. In this volatile environment, there are untapped opportunities. What counts most is where you feel most comfortable putting your money, not how well your strategy works or how little money you lose.

[amirmoradi]

Well made video. Explains things clearly!

[thenewwayhome]

Overprinting dollars without physical commodities has totally wrecked this economy.

[offplumbnan]

Looking for you on Patren-hoping for a link! Love your humor

[rottenrobbie]

The Fed, along with the Treasury Department print out half a trillion dollars and dump into the global financial market every year.
During Covid era, the Fed also printed out around $7.5 Trillion for stimulus relief.

[hayranlarndunyas]

Brian Koble is such an excellent recommendation

[JonnyMReck]

“They’re not too worried about it” - this means you should worry about it

[Muzeishen]

This really helped things make more sense. Thank you.

[ast]

Good thing they didn't mention that the Fed can never run out of money. That would have been informative.

[marco]

I'm here to learn how to trade and also to invest. After listening to a guy on a live program about the importance of investing and how he made $410k in 4 months from $145k, somehow this video has helped shed light on key points, but I'm still confused as a newbie and I'm open to meaningful ideas.

[markbirmingham]

By my lights, the size of the
Deferred Asset roughly equates to a subsidy to the banking system. The Deferred Asset being the approximate difference between $ paid to banks as IORB (interest on reserve balances) and interest the Fed receives on its asset holdings.