Fed to Reportedly Record $80 Billion Annual Operating Loss for the First Time
According to a recent tweet from the official Bitcoin Twitter account, the Federal Reserve is reportedly bankrupt. The tweet claimed that the Fed will post its first annual operating loss of $80 billion in 2023, which would be the first such loss since 1915. The Fed is also allegedly carrying a negative capital of $38 billion. The tweet further highlighted that the Fed’s $1.3 trillion unrealized loss on its portfolio was not included in the $80 billion loss.
The year 2023 has seen several major banks shut down, including Silvergate Bank, Silicon Valley Bank, and Signature Bank (NASDAQ:SBNY). The collapse of these banks, especially Silicon Valley Bank, is being considered one of the biggest failures since the financial crisis of 2008.
Despite market volatility, traders believe the Fed will continue tightening its monetary policy. It is estimated that there is an 85% chance of a 0.25% increase in interest rates during the Federal Open Market Committee’s meeting in Washington, D.C., on March 21-22. While Goldman Sachs (NYSE:GS) predicts no interest rate hikes this month, Bank of America (NYSE:BAC) and Citigroup (NYSE:C) predict a quarter-point hike.
During this chaotic time, the crypto market has been performing well. Bitcoin has surpassed the $24,500 price range, and the entire market is trading in the green. It is uncertain whether this is a bull trap.