The writer is an FT contributing editor
This month the Federal Reserve decided it would cut its own workforce by a tenth over the next several years. The move has been reported as a way to find savings at the Fed before the so-called Department of Government Efficiency knocks on the door. That may be right, but the Fed has another problem it doesn’t like to talk about: it’s operating at a loss. On purpose.
When a commercial bank lends you money, it’s adding both an asset and a liability to its own balance sheet. The asset is the loan itself, which you will repay over time. The liability is brand-new deposits, which it marks up from scratch in your account. Those deposits are brand-new money.
您已阅读14%（698字），剩余86%（4171字）包含更多重要信息，订阅以继续探索完整内容，并享受更多专属服务。