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Story summary
- The U.S. Federal Reserve posted a narrower loss of $19.6 billion for 2025.
- The improvement followed a contraction of the Fed's balance sheet and lower interest expenses.
- The losses stem from aggressive COVID-19 bond purchases that shifted to higher interest payments as rates rose.
- The Fed's deferred asset stands at $245 billion.
- The Fed's headquarters cost overruns may influence governance, while Kevin Warsh's nomination could reshape bond management.
