Economy and Finance

Fed set to lose $500 billion

Economists predict that the US Federal Reserve could lose half a trillion dollars in just three years thanks to policies enacted by the central bank under Chairman Ben Bernanke.

Chris Carrington

Published on

March 1, 2013

Economists have said that The Federal Reserve could lose half a trillion dollars in just three years due to policies enacted by the Central Bank under its chairman Ben Bernanke. Investment analysts at MSCI Inc say that his attempts to keep the economy afloat have been futile.

Sarah Binder a senior fellow at the Brookings Institution said she expects the findings to be greeted with hostility by Washington. Speaking to Bloomberg News she said:

“Even if there’s a perfectly logical explanation and the normalization of the balance sheet is a good thing in the long term, the headlines will probably generate congressional scrutiny,” she says. “That’s never a good thing from the Fed’s perspective.”