© Reuters. The Fed announces its first annual operation loss of $80 billion- The Bitcoin Twitter account stated that the Federal Reserve is technically bankrupt.
- It also reported that the Fed will post its first annual operating loss of $80 billion.
- The Fed is also alleged to have $38 billion in negative capital.
The Fed’s Twitter account has tweeted that the Federal Reserve is now technically speaking. It is claimed that the Fed will post its first annual operating loss of $80 billion in 2023.
federalreserve is technically bankrupt. In 2023, the Fed will post its first annual operating loss of $80 billion since 1915 and negative capital will be $38 billion. This loss is not counting the unrealized loss of $1.3 trillion in its portfolio. pic.twitter.com/DMYFhXGx59
– Bitcoin (Bitcoin) March 14, 2023
The annual operating loss of $80 billion would be the first since 1915. The Fed is also said to have negative capital of $38 billion. The Twitter account also stated that this loss does not include unrealized losses of $1.3 trillion in its portfolio.
There has been a lot of coverage in 2023 about the closure of several major banks. Silvergate Bank, Silicon Valley Bank, and signature bank (NASDAQ:) All operations have ceased. The collapse of these banks, especially that of Silicon Valley, is considered one of the biggest failures since the 2008 financial crisis.
Although market rates were volatile on Monday, the general feeling was that the Fed would continue to tighten monetary policy. Traders estimate that there is an 85% chance of a rate hike of 0.25% during the FOMC meeting in Washington, DC on March 21-22.
Goldman Sachs (NYSE) said Monday that it does not expect the Federal Reserve to raise interest rates this month. However, hardly any other Wall Street analyst shares this point of view. On the other hand, Bank of America (NYSE:) and Citigroup (NYSE:: Predict that the Fed will increase rates by a quarter point.
Amidst this chaos, the cryptocurrency market has been on a bullish run. Bitcoin has breached the $24,500 price range and the entire market is trading in the green. It is unclear at the moment if this was a bull trap.
The publication, announced by the Fed after losing its first annual $80 billion operation, made its first appearance in issuing coins.
