Yellen downplays possibility of Fed losing money

Published June 22, 2016 3:45pm ET



Federal Reserve losses in the next years are unlikely, Chairwoman Janet Yellen said Wednesday in testimony downplaying what Fed experts see as a major political risk facing the central bank over the next few years.

Although the Fed is paying banks interest on $2.3 trillion of reserves held at the central bank, “it is very unlikely that the Fed would end up with negative income,” Yellen said during a House Financial Services Committee hearing.

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