GeneralNeutralBlockonomi · 4h ago7/10
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Federal Reserve Reports Third Straight Loss as Interest Costs Outpace Earnings
The Federal Reserve reported an $18.7 billion loss in 2025, extending its third consecutive year of losses as interest payments on reserves and reverse repurchase agreements exceed income from bond holdings. While losses have narrowed from their 2023 peak, the trend reflects ongoing pressure from the Fed's inverted yield curve position and highlights structural challenges in monetary policy execution.