Alex Pollock on the Fed's holdings of mortgage securities

As of April 2023, the Fed owns $2.6 trillion of mortgage securities.  That is larger than what the total assets of the Fed were at the end of 2008.  That number and the interest rate risk it represents would have astonished previous generations of Federal Reserve governors.  The Fed also experienced a massive mark to market loss on these mortgage securities: a loss of $408 billion as of the end of 2022, or almost ten times the Fed' total capital of $42 billion.

~ Alex J. Pollock, "How do you gt interventions withdrawn when the crisis is over?," The Austrian, May-June 2023