Fed close to breaking even, may return cash to Treasury, on track to profitability.

From Yahoo Finance: 2025-03-24 13:26:00

The Federal Reserve is close to ending a streak of losses, potentially returning cash to the Treasury, according to analysts at Morgan Stanley. Aggressive rate hikes led to losses, but with rates down, the Fed is close to breaking even. The breakeven rate is around 4.8%, with the Fed’s income meeting expenses. The Fed’s financial situation for 2024 showed a smaller loss compared to 2023. Losses do not affect Fed operations, but it must use future profits to pay off a deferred asset of $224.4 billion. Analysts believe the Fed may be on track to profitability in the near future.



Read more at Yahoo Finance: Morgan Stanley says Fed poised to regain positive cash flow