Federal Reserve officials found discrepancies of USD 1.4 trillion in U.S. Treasury holdings data from hedge funds in the Cayman Islands

Federal Reserve researchers stated that by the end of 2024, the scale of U.S. Treasury bonds held by hedge funds in the Cayman Islands will exceed the official U.S. data, possibly being $1.4 trillion higher than the reported figures. The holdings of these funds reached $1.85 trillion in December, an increase of $1 trillion since 2022. A report from the U.S. Treasury indicated their holdings at $423 billion. These Federal Reserve researchers noted that their data shows the Cayman Islands as the largest overseas creditor of the U.S., surpassing China, Japan, and the United Kingdom