How Should Policymakers Deal with the Federal Reserve’s Negative Real Equity Capital?

Posted on 03/31/2023

The Federal Reserve Act requires the Reserve Banks to remit excess earnings to the U.S. Department of the Treasury after providing for operating costs, payments of dividends, and any amount necessary to maintain surplus. During a period when earnings are not sufficient to provide for those costs, a deferred asset is recorded. With the Federal…

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