The Fed thinks it will pay this off in 2027!! Imagine any business that operates in a loss that long!
“But what happens when its costs exceed its income? In this case, the Fed creates a “deferred asset,” which is a negative liability whose value is the cumulative value of the shortfall in earnings. Once the Fed returns to earning a positive net income, it will pay down the value of the deferred asset until it reaches zero, at which point the Fed will resume sending remittances to the Treasury. As of Nov. 8, 2023, the Fed had accumulated a deferred asset of $116.9 billion. In April 2023, the New York Fed estimated that the Fed will return to positive net income in 2025. Combining those New York Fed projections with the latest data on net income, we estimate that the Fed will carry this deferred asset until mid-2027, after which it will resume transfers to the Treasury.”
https://www.stlouisfed.org/on-the-economy/2023/nov/fed-remittances-treasury-explaining-deferred-asset#:~:text=For%20most%20of%20the%20past,2022%2C%20remittances%20due%20became%20negative.
bobby / Bobby
npub10c…k94en
2024-01-20 02:45:58
in reply to nevent1q…flxm
Author Public Key
npub10cnmvpgt7ppgzhlw8rpm359twwqz5yrjd5v06k8uelv9z4u359ss2k94enPublished at
2024-01-20 02:45:58Event JSON
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"content": "The Fed thinks it will pay this off in 2027!! Imagine any business that operates in a loss that long!\n\n“But what happens when its costs exceed its income? In this case, the Fed creates a “deferred asset,” which is a negative liability whose value is the cumulative value of the shortfall in earnings. Once the Fed returns to earning a positive net income, it will pay down the value of the deferred asset until it reaches zero, at which point the Fed will resume sending remittances to the Treasury. As of Nov. 8, 2023, the Fed had accumulated a deferred asset of $116.9 billion. In April 2023, the New York Fed estimated that the Fed will return to positive net income in 2025. Combining those New York Fed projections with the latest data on net income, we estimate that the Fed will carry this deferred asset until mid-2027, after which it will resume transfers to the Treasury.”\n\nhttps://www.stlouisfed.org/on-the-economy/2023/nov/fed-remittances-treasury-explaining-deferred-asset#:~:text=For%20most%20of%20the%20past,2022%2C%20remittances%20due%20became%20negative.",
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