It's not that surprising. The Fed holds trillions of dollars in bonds. Bonds' value drops as interest rates go up, and so their main asset keeps losing value. And so they print more money, buy more bonds with that money, but the influx of money causes inflation to rise, which leads to higher interest rates, which causes the bonds to lose value, and so they print more money ...
It's not that surprising. The Fed holds trillions of dollars in bonds. Bonds' value drops as interest rates go up, and so their main asset keeps losing value. And so they print more money, buy more bonds with that money, but the influx of money causes inflation to rise, which leads to higher interest rates, which causes the bonds to lose value, and so they print more money ...
Kinda like a snake eating it's own tail?
Amazing how random internet users know this, but the Fed pretends not to....
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