How Republicans calling for smaller government could use the Fed’s balance sheet to wield more power - MarketWatch

1. Fed holds $818 billion in unrealized losses, impacting financial stability. 2. Political tensions rise over Fed's funding for CFPB amid losses. 3. High interest rates could exacerbate Fed's losses and market volatility. 4. Elon Musk is charged with government efficiency to reduce federal size. 5. Powell remains firm on Fed's independence amid political pressures.