Fed losses breach $100 billion as interest costs rise
By Michael S. Derby
NEW YORK (Reuters) – Federal Reserve losses breached the $100 billion mark, central bank data released on Thursday showed, and they’re likely to go a lot higher before the red ink stops.
The U.S. central bank is continuing to pay out more in interest costs than it takes in from the interest it earns on bonds it owns and from the services it provides to the financial sector. While there’s considerable uncertainty around how it will all play out, some observers believe Fed…