The Fed is about to make a lot less money for the government
Feb 1, 2023

The Fed is about to make a lot less money for the government

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The Federal Reserve has been one of the largest single sources of revenue in recent years for the federal government. But now, thanks to low returns on assets and high borrowing costs, the central bank is set to be much less profitable. We check in on markets ahead of today's Fed rate decision with Susan Schmidt, Head of Public Equities at the State of Wisconsin Investment Fund. And, Western states sharing water resources from the Colorado River have again blown past a federal deadline to cut water usage after California held out on a deal.

Segments From this episode

Formerly a cash cow, the Fed is now losing "about $2 billion a week"

Feb 1, 2023
The central bank invested in securities to get the economy through the pandemic recession.
The U.S. Federal Reserve is seen in Washington, DC. The bank has been a source of government revenue for years following the 2008 financial crisis, but rising interest rates may soon change that.
Mandel Ngan/AFP via Getty Images

A markets vibe check ahead of the Fed's rate announcement

Susan Schmidt, Head of Public Equities at the State of Wisconsin Investment Fund, tells us about the mood on Wall St.

Music from the episode

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The team

Meredith Garretson Morbey Senior Producer
Erika Soderstrom Producer
Alex Schroeder Producer
Ariana Rosas Producer
Jarrett Dang Digital Producer (gone fishing)
Jesson Duller Media Producer
Nick Esposito Media Producer
Katie Barnfield Producer, BBC
James Graham Producer, BBC
Jo Critcher Producer, BBC