The Federal Reserve’s massive balance sheet may be one of the biggest risks facing the nation.
That’s the conclusion of an extensive analysis by the nonpartisan Congressional Budget Office.
The report, issued Wednesday, shows the federal reserve has more than $1 trillion in outstanding mortgage-backed securities — a large number of which are backed by taxpayer money.
As a result, banks could borrow billions from the Fed and be stuck with the burden of servicing those loans.
“When the Fed raises its mortgage-bond portfolio, banks will need to either increase their capital and/or refinance their mortgages to cover the new loans, and will likely have to do so on a smaller loan to repay the old loans,” the CBO analysis found.
That means the economy could be headed toward a financial crisis.
The chart below illustrates the extent of the problem: The chart shows that the Federal Deposit Insurance Corporation, or FDIC, is responsible for about 70% of all U.S. mortgages, and its reserve ratio has climbed from 1.7% of the U.N. financial system in 1960 to nearly 4.3% in 2016.
As of 2016, the Fed had about $20 trillion in reserves at the end of its balance sheet, which was enough to cover $8 trillion in mortgages.
As the chart above shows, the Federal Government owns about 60% of that total.
But banks can’t borrow from a government agency that they don’t own the bonds in.
The Fed and FDIC have limited powers.
The two agencies are responsible for maintaining the federal balance sheet.
They’re not supposed to be involved in setting interest rates or determining who can borrow money.
In the case of mortgage-funded securities, the FDIC is the only agency that can issue a “quantitative easing” program, which allows banks to buy back the securities at lower interest rates.
But they’re also prohibited from raising interest rates and making it easier for borrowers to borrow.
The CBO’s analysis shows that in the past two years, the agency’s reserves have shrunk by $3.4 trillion to $1.9 trillion.
If the federal government and banks didn’t have this money, the result could be a global financial crisis that could cause billions of dollars of economic losses and force the Fed to raise interest rates again, the report says.
The U.K. and Australia are both the most indebted countries in the world, according to the CBO, with the U,K.
averaging about $1,500 a person per person and Australia $1 and $2, respectively.
But those two countries are also the most heavily indebted, the CBO said.
The debt in the U-K and Australia is estimated to be about $2.8 trillion.
As you can see from the chart, the United States is the third most indebted country, with $8.3 trillion in total debt.
The Federal Reserve also has $1 of its $3 trillion reserve portfolio tied up in mortgage-based securities.
“While the Fed’s balance sheet has grown over time, it has remained relatively stable, which makes it less vulnerable to adverse shocks and other financial market disruptions,” the report said. For more: Here are five big changes that have happened since the 2008 financial crisis: What the Federal government has spent since 2008 on its own debt and the debt of other countries The U. S. government has been using more money to buy government bonds than it has spent on debt, according the Congressional Budget Act of 1974.
Since 2008, the amount the government has borrowed has risen about 1% a year, while the amount it has issued has fallen.
And the CBO’s study found that during the crisis, “government debt rose by a smaller share of the total economy than in the preceding four decades.”
What’s the difference between debt and government assets?
The debt a country has borrowed is called its “financial assets.”
Its “financial liabilities” are assets it has to pay back, like interest and other principal.
So if the U