Fed reports narrowing US$19.6 billion loss for operations in 2025

The Marriner S. Eccles Federal Reserve Board Building in Washington. (AP Photo/Jose Luis Magana, File)

The Federal Reserve reported a ‌narrower loss last year in ‌an audited financial statement released on Wednesday.

The ​Fed said that its total comprehensive loss for the full year of 2025 stood at $19.6 billion, versus $77.5 ‌billion in ⁠red ink for 2024 and a $114.6 billion loss in ⁠2023. The Fed last turned a profit in 2022 and returned $76 ​billion to ​the government ​that year, down ‌from $109 billion in 2021.

The Fed’s losses are tied to the size of its balance sheet, which swelled massively during the COVID-19 pandemic as ‌the Fed bought ​Treasury and mortgage ​bonds aggressively ​to both stabilize troubled ‌financial markets and to ​provide economic ​stimulus when its interest rate target was at near zero ​levels and ‌could be trimmed no further.

(Reporting ​by Michael S. Derby; Editing ​by Chizu Nomiyama)