By Brian Bonis, Lauren Fiesthumel, and Jamie Noonan, includes “… For the first time since 2013, the report showed the System Open Market Account (SOMA) portfolio having an unrealized loss position. … Importantly, as discussed below, the SOMA portfolio's unrealized position has no effect on the ability of the Federal Reserve, as a central bank, to meet its financial obligations and pursue its statutory goals of price stability and maximum employment; in addition, it has no implications for the evolution of the Federal Reserve's earnings remittances to the U.S. Treasury or, ultimately, for U.S. taxpayers when, as expected, securities are held to maturity.”
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