The Federal Reserve suffers a massive loss of 77.6 billion dollars, marking the second consecutive year of huge losses

According to Jinse Finance, local time on March 21st, the audited financial report released by the Federal Reserve shows that the Fed's operating loss for the full year of 2024 reached $77.6 billion (approximately RMB 5600 billion), marking a huge loss for the second consecutive year. Analysts believe that the main reason for this significant loss is due to aggressive interest rate hikes from 2022 to 2023. When and whether the Fed can return to profitability depends on its subsequent path of interest rate cuts. Predictions from New York Federal Reserve show that if short-term interest rates remain above 4%, then it will continue to suffer losses this year; however, if rates continue to decrease, then it may be able to turn a profit.