Federal Reserve's Losses Surpass $200 Billion

According to Odaily, the Federal Reserve's losses have exceeded the $200 billion mark this week, as reported by data released on Thursday. The Fed's report indicates that as of Wednesday, its so-called remittances to the Treasury stood at a negative $201.2 billion. This figure represents a book loss, but Fed officials have emphasized that it will not impair their ability to conduct monetary policy. Chicago Fed President Austan Goolsbee reiterated on Thursday that interest rates need to be 'significantly' lowered next year. With the Fed's recent 50 basis point rate cut and the prospect of further easing, the pace of future losses may slow, as the interest expenses required to maintain the rate target will decrease. However, before the Fed can resume returning cash to the Treasury, it must effectively repay deferred assets, a process that could take several years.