ZARZA We are Zarza, the prestigious firm behind major projects in information technology.
Listen "Fed’s $211B Crisis: Hidden Risks in the Federal Reserve’s Portfolio | The Tom Dupree Show”"
Episode Synopsis
The Federal Reserve’s Financial Predicament: A Deep Dive with Tom Dupree
Financial Hour Episode with Tom Dupree and Mike Johnson
Episode Overview
In this revealing episode, Tom Dupree and Mike Johnson discuss the Federal Reserve’s concerning financial situation and its implications for the broader economy. They analyze the Fed’s current predicament, particularly focusing on its significant losses and negative carry issues.
Key Topics Discussed
Federal Reserve’s Current Challenges
The Fed is experiencing a negative carry situation, paying about 5% on deposits while earning only around 2.2% on investments
Current cumulative losses stand at approximately $211 billion
September quarterly financial report shows a negative $67 billion deferred asset increase over nine months
The Fed’s Asset Portfolio
Holds approximately $2.4 trillion in mortgage-backed securities
Owns about $4.7 trillion in treasuries
Nearly $1 trillion of mortgage-backed securities are at 2% interest rates
Current market rates for long-term mortgage backs are around 5.5-5.6%
Historical Context
Major purchasing activity began during the 2008 financial crisis
By 2010, the Fed had purchased about $1.25 trillion in mortgage backs
In 2020, during COVID, they purchased approximately $700 billion in agency securities within two months
Investment Strategy Discussion
Tom and Mike emphasize the importance of having both bonds and dividend-paying stocks in investment portfolios
Discussion of how companies that consistently raise dividends can help combat inflation
Analysis of fixed income versus growth investments in the current market environment
Expert Commentary
“This is a problem and now everybody knows about it… The incoming administration has got to get their handle on it.” – Tom Dupree
Practical Implications
Potential impact on mortgage rates and the housing market
Effects on government operations and bond markets
Implications for individual investors and portfolio management
Contact Information
To learn more about managing your portfolio in these challenging times:
Call: 859-233-0400
Website: dupreefinancial.com
Schedule appointments directly through the website homepage
Next Steps
For more detailed information about how these market conditions might affect your investments, schedule a consultation with Dupree Financial Group to discuss your personal financial situation.
This episode of The Tom Dupree Show was brought to you by Dupree Financial Group, where we make your money work for you.
The post Fed’s $211B Crisis: Hidden Risks in the Federal Reserve’s Portfolio | The Tom Dupree Show” appeared first on Dupree Financial.
Financial Hour Episode with Tom Dupree and Mike Johnson
Episode Overview
In this revealing episode, Tom Dupree and Mike Johnson discuss the Federal Reserve’s concerning financial situation and its implications for the broader economy. They analyze the Fed’s current predicament, particularly focusing on its significant losses and negative carry issues.
Key Topics Discussed
Federal Reserve’s Current Challenges
The Fed is experiencing a negative carry situation, paying about 5% on deposits while earning only around 2.2% on investments
Current cumulative losses stand at approximately $211 billion
September quarterly financial report shows a negative $67 billion deferred asset increase over nine months
The Fed’s Asset Portfolio
Holds approximately $2.4 trillion in mortgage-backed securities
Owns about $4.7 trillion in treasuries
Nearly $1 trillion of mortgage-backed securities are at 2% interest rates
Current market rates for long-term mortgage backs are around 5.5-5.6%
Historical Context
Major purchasing activity began during the 2008 financial crisis
By 2010, the Fed had purchased about $1.25 trillion in mortgage backs
In 2020, during COVID, they purchased approximately $700 billion in agency securities within two months
Investment Strategy Discussion
Tom and Mike emphasize the importance of having both bonds and dividend-paying stocks in investment portfolios
Discussion of how companies that consistently raise dividends can help combat inflation
Analysis of fixed income versus growth investments in the current market environment
Expert Commentary
“This is a problem and now everybody knows about it… The incoming administration has got to get their handle on it.” – Tom Dupree
Practical Implications
Potential impact on mortgage rates and the housing market
Effects on government operations and bond markets
Implications for individual investors and portfolio management
Contact Information
To learn more about managing your portfolio in these challenging times:
Call: 859-233-0400
Website: dupreefinancial.com
Schedule appointments directly through the website homepage
Next Steps
For more detailed information about how these market conditions might affect your investments, schedule a consultation with Dupree Financial Group to discuss your personal financial situation.
This episode of The Tom Dupree Show was brought to you by Dupree Financial Group, where we make your money work for you.
The post Fed’s $211B Crisis: Hidden Risks in the Federal Reserve’s Portfolio | The Tom Dupree Show” appeared first on Dupree Financial.
In God we trust