Everyone wants the Federal Reserve to say how it will unwind the $3 trillion balance sheet amassed from years of quantitative easing.
Indeed, this was something of a hot topic in Fed Chairman Ben Bernanke's testimony before Congress last week.
One of the big issues the central bank faces is the inevitable loss it will have to take when interest rates rise and the value of the Fed's bond portfolio declines.
Although not an economic problem — as "losses" for a central bank are more of an accounting issue — there could be a PR problem when the Fed stops making payments to the Treasury from the interest income it receives on its bond portfolio.
Read more: http://www.businessinsider.com/fed-remittances-to-treasury-to-decline-2013-3#ixzz2Mh5kj9aL
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