The U.S. Federal Reserve Bank is technically insolvent (or bankrupt in layman's terms). Of course, as "buyer of last resort", the U.S. Treasury would not allow the Fed to cease operations legally. Instead, the Fed maintains operations in the red (booking losses in the form of a "deferred asset") until such time it makes money again when it can once again make remittances to the U.S. Treasury. I talk about the broader complications this presents in the current environment, and to be mindful of the "headwinds" this may create in the capital markets.