As the US Federal Reserve continues with its stimulus program, it might be the Fed itself that's next in line for a bailout

Gavin Wendt

As the US Federal Reserve continues with its stimulus program, it might be the Fed itself that's next in line for a bailout. The Fed's bond-buying binge could put the central bank's finances at risk if interest rates were to rise sharply, critics warn. The Fed's balance sheet would swell to more than $4 trillion and as the number gets bigger, the risks also rise. The Fed stands to lose a lot of money, and by a lot of money, I mean hundreds of billions of dollars, said Rep. Mick Mulvaney (R-S.C.), who has raised those concerns with Fed Chairman Ben S. Bernanke. It is not hyperbole to suggest the next big bailout could be of the Federal Reserve. (LA Times)


Gavin Wendt

I have been a senior resources analyst following the fortunes of the mining and energy sectors for the past 25 years - previously working with stockbroker Intersuisse and financial group Fat Prophets. I am also Executive Director, Mining & Metals...

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