Fed Turns Profit Corner After Pandemic Losses

The Federal Reserve, after three years of financial losses due to pandemic management, is now making enough money to cover a deferred asset, marking a shift in the trend of increasing losses. The twelve regional Reserve Banks are expected to make over two billion dollars in combined profits this quarter. The Feds losses during the pandemic, due to bond purchases and interest rate changes, have been a significant departure from its historical role as a consistent source of income for the government. However, a recent cut in the interest rate paid on bank reserves and rising market yields suggest that the Feds losses may soon reverse. The Daily News Now! - Every city. Every story. AI Powered. Hosted on Acast. See acast.com/privacy for more information.