Could the Federal Reserve Become Insolvent?

The U.S. Federal Reserve's journey to the outer limits of monetary policy is raising concerns about how hard it will be to withdraw trillions of dollars in stimulus from the banking system when the time is right. Federal Reserve The Federal Reserve headquarters in Washington, DC. While that day seems distant now, some economists and market analysts have even begun pondering the unthinkable: could the vaunted Fed, the world's most powerful central bank, become insolvent? Almost by definition, the answer is no.