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To: John Koligman who wrote (77608)3/17/2023 5:47:19 PM
From: Lee Lichterman III  Read Replies (1) | Respond to of 98149
 
I'm curious how they are handling the bonds, if they can sell them on short notice etc.
Say I'm holding bonds that are underwater and I need liquidity. I bought 10 years when rate was 3.75% but rate was 4.0% when I gave them to the Fed and they were at a loss. Now the rate as of today is 3.39% so now I'm at a profit. Can I get them back and sell to get my gains and be free of the stigma of being on the hook with the Fed or are they stuck there?



To: John Koligman who wrote (77608)3/17/2023 6:39:58 PM
From: Qone0  Respond to of 98149
 
>> They conceded that if the Fed kept losing money, its borrowing needs could potentially become so big that they would interfere with the conduct of monetary policy.<<

The FED doesn't borrow money, they create money with a click of a mouse. It's unlimited, and infinite.