- For 109 years the Federal Reserve created money, lent it to the U.S. government and handed the interest it collected back to Washington - almost $1 trillion in the decade starting in 2011.
- Pandemic-era lending locked the Fed into earning about 2% on trillions of dollars while it now pays banks around 4%, producing a record loss of hundreds of billions in 2026.
- The Fed covers its losses by creating money and the government covers its lost revenue by borrowing, and both feed the inflation that eats at the dollars in your account.
