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Fed's SOMA Faces Negative Income, Recovery Possible Next Year

6/4/2025

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Summary

Story summary

The New York Fed forecasts negative net income for the Federal Reserve's SOMA in 2025.
High interest expenses from reserve balances and reverse repurchase agreements contribute to this negative income.
However, the report suggests a potential return to positive net income as early as next year.

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Story summary

The New York Fed forecasts negative net income for the Federal Reserve's SOMA in 2025.
High interest expenses from reserve balances and reverse repurchase agreements contribute to this negative income.
However, the report suggests a potential return to positive net income as early as next year.