The Federal reserve is on track to lose half a trillion in Q1. Half of that out of their $2.7 trillion MBS portfolio...

The Federal reserve is on track to lose half a trillion in Q1. Half of that out of their $2.7 trillion MBS portfolio. Will they continue buying assets? Will they continue raising rates? What does this mean bros

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Bump for answers

IT'S FUCKING OVER.

This crash was the most obvious retail shakeout before the mother all meltups. FED will dump their bags at new ATHs.

It means money go poof aka deflation

What assets will they dump? House prices are dropping after this announcement and they have almost 3 trillion in MBS that are losing billions in value. What is the purpose, what is their plan?

just print another 1/2 trillion out of thin air wgaf its clown money anyway

Redpill me on mortgage backed securities, what is their purpose?

To pump the housing market so boomers, who have their entire net worth in their house, can get a reverse mortgage, buy and RV, and complain about millennials while leaving nothing for them.

*an RV

>lose half a trillion
They own the printer.

There's nothing they can do now. If they didn't raised the interest yet they could trick retards into keep buying overpriced houses but now as they already did it and mantained the hawkish tone it's fucking JOEVER.

Funny thing the Central Bank of the biggest economy of the world becoming bankrupt.

They are planning to dump exactly these bomb mortgages, lol.

fucking lol

bankies getting bogged again

>Will they continue buying assets?
No, they are trying to fight inflation by stopping quantitative easing. They stopped buying MBS which causes the demand/price of the assets to drop (which you can see on the reduced value of their balance sheet) and the yield to increase. They knew this would happen, it is all going according to their plan.

>Will they continue raising rates?
Seems like that is the plan, but I have my doubts that they are able to go too much higher or the Federal Government will not be able to service the interest payments on their debt.

Dumbass OP

They bought those assets high
They are selling them lower
Their losses are others gains, who actually use money
Fed losing money to prop up the system is why it exists
It's just moving numbers around, the real thing is who gains from fed activity hint the wealthy and poorest

It's basically a transfer mechanism from wagies and normies to indebted and rich

"The Fed data released this morning shows that the trading units of six global banks received $17.66 trillion of the $28.06 trillion in term adjusted cumulative loans, or 63 percent of the total for all 25 trading houses (primary dealers) that borrowed through the Fed’s repo loan program in the first quarter of 2020."

This is just the 1st quarter of 2020

It means the deficit has to grow a little larger to pay it off, then the Fed QEs that deficit and fuck all will have changed.

Fed isnt supposed to profit. Theyre taking them out of the market and now selling them to fuel a recovery in prices for assets.

Thanks user I learn more about the creation of a neofuedal system everyday here. Withered wojack with a hand full of dust.jpeg

Housing market won't crash user. Housing market to the moon!