Federal Reserve reports $18.7B loss in 2025

The Federal Reserve has reported an operating loss of $18.7 billion for 2025, marking its third straight year of losses. This brings the total three-year deficit to $210.3 billion, following a $77.6 billion loss in 2024 and a $114.0 billion loss in 2023. The sustained losses are primarily attributed to the central bank's high interest expenses on its liabilities, which have outpaced the income from its asset holdings. The trend highlights the financial strain on the Fed's operations as it continues to manage monetary policy in a high-rate environment.