Back in early January, the Federal Reserve made an obscure announcement in its weekly report. It appeared to be an inconsequential accounting change in the treatment of earnings, and was sold as a step toward greater transparency.
The change was buried in such jargon that it took weeks for the financial bloggers to fully digest what had happened — the new move made it effectively impossible for the Fed to go bankrupt! In this article I'll explain the rule change and speculate on the Fed's motives.
Ac-cent-tchu-ate the Positive: The New Accounting at the Fed - Robert P. Murphy - Mises Daily
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