Should the Fed Be Independent or Accountable?

The central bank has lost all its capital more than four times over, and its real capital today is negative $158 billion.

AP/Alex Brandon
The Fed chairman, Jerome Powell, on December 13, 2023, at Washington. AP/Alex Brandon

As October 2024 begins, the Federal Reserve’s accumulated operating losses have passed the astonishing amount of $200 billion — to be specific, its losses reached $201.2 billion as of October 2. * Besides far exceeding the Fed’s capital, these losses are also a $201 billion and growing hit to taxpayers.  This alone must call into question the Fed’s claim that it should be “independent.”

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