SHEFFIELD: Democrats’ Rosy Economic Picture Has Become A Nightmare As Recession Finally Hits

Published in the Daily Caller.

Under Powell’s watch, banks will win and everyday people lose, as AEI economists Paul H. Kupiec and Alex J. Pollock report: “For the first time in its 108-year history, the Federal Reserve System faces massive and growing mark-to-market losses and is projected to post large operating losses in the near future … Because they are now paid interest on their reserve balances and receive guaranteed dividends on their Federal Reserve stock, member banks will monetarily benefit from the Fed’s policy to fight inflation while the public bears Federal Reserve system losses. Meanwhile, the public at large will also face the costs of higher interest rates, reduced growth and employment and losses in their investment and retirement account balances.”