"The Fed's Controversial Role in Wealth Transfer and Bank Failures"
The burden on US taxpayers from the national debt has declined dramatically over the past three years, despite public debt increasing by roughly $5tn over the same period. The market value of US Treasury securities has gone from a high of 108% of the economy to its current value of 85%, putting its value close to the prepandemic level. However, this windfall gain going to taxpayers has come largely at the expense of bondholders, including banks that have taken big losses on their bond investments, leading to increased financial stress.