With the Federal Reserve System likely to post its first annual operating loss since 1915, Paul H. Kupiec and Alex J. Pollock explain why it happened and how it will cost taxpayers for years to come. According to Kupiec and Pollock, the Fed’s quantitative easing investments “created a massive Fed interest rate risk exposure that could generate mind-boggling losses if interest rates rose—as they now have.”
The debt-ceiling fight won’t bring entitlement reform, but Republican plans to curtail long-term federal spending will grow increasingly attractive over time.
James C. Capretta | Hill
If the program changed to encourage cost reduction through competition and consumer choice, the entire system would benefit from a renewed focus on efficiency in the provision of service to patients.