The Federal Reserve's book loss exceeded the $200 billion mark, which may push interest rates to continue to fall

The Fed's losses broke the $200 billion mark this week, according to data released by the Federal Reserve on Thursday. The Fed reported that the level of so-called profits it remitted to the Treasury was negative $201.2 billion as of Wednesday. The figure represents a paper loss, which Fed officials have noted will not impair their ability to conduct monetary policy. Chicago Fed President Goolsbee reiterated on Thursday that interest rates need to be cut "substantially" next year. With the Fed's recent 50 basis point rate cut and the prospect of further easing, the pace of future loss growth may slow as the level of interest payments required to maintain interest rate targets will be lower. However, before the Fed returns the cash to the Treasury, it must effectively repay the deferred assets, which may take years. (Jinshi)