From Yahoo Finance: 2025-03-21 13:01:00

The Federal Reserve reported a decline in losses last year, with a total distribution of comprehensive net loss at $77.5 billion, down from $114.6 billion in 2023. The loss is attributed to efforts to reduce high inflation levels, as the Fed self-funds through securities and financial services. The central bank’s financial state is the first public reveal in years.

In response to record inflation levels, the Fed aggressively raised short-term interest rates to 5.25%-5.50% by July 2023. Subsequently, rates were lowered by 1% due to inflation drops, with current policy on hold. Despite increased interest costs, exceeding earnings, the central bank reassures the losses do not impact its operations or monetary policy.



Read more at Yahoo Finance: Fed reports comprehensive 2024 net loss of $77.5 billion