Fed Reports Narrower 19.6 Billion Dollar Loss for 2025

The Federal Reserve reported a total comprehensive loss of $19.6 billion for 2025, down from $77.5 billion in 2024. The losses stem from pandemic-era stimulus.

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The Federal Reserve has reported a significantly narrower operational loss for the 2025 fiscal year, according to an audited financial statement released on Wednesday. The central bank of the United States saw its total comprehensive loss for the year stand at $19.6 billion, representing a sharp improvement from the $77.5 billion in red ink recorded in 2024. This latest figure continues a trend of recovery since 2023, when the institution reported a substantial loss of $114.6 billion. The institution last achieved a profit in 2022, a year in which it returned $76 billion to the government, following a return of $109 billion in 2021. The financial losses are primarily linked to the scale of the Federal Reserve balance sheet, which expanded significantly during the COVID-19 pandemic. During that period, the bank aggressively purchased Treasury and mortgage bonds to stabilize financial markets and provide economic stimulus while interest rates were at near-zero levels. As the interest rate environment shifted, the costs associated with these pandemic-era measures contributed to the reported deficits.

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