Federal Reserve Reports Third Straight Loss as Interest Costs Outpace Earnings

TLDR: The Federal Reserve recorded an $18.7 billion loss in 2025, marking its third consecutive year in the red. Rising interest payments on reserves and reverse repos continue to exceed income from bond holdings. Losses peaked in 2023 and narrowed by 2025, signaling a gradual shift as rate pressures stabilize. The Fed has paused Treasury [...]

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