Federal Reserve Reports Profits Amid Interest Rate Adjustments
According to information from Odaily, the Federal Reserve has reportedly ended a three-year streak of negative results, with recent data indicating that the institution has returned to profitability since the beginning of November. The expectation is that this recovery will help gradually reduce the volume of previously accumulated losses.
Since November 5, the Fed's deferred asset has decreased from $243.8 billion to $243.2 billion on November 26. The decline in interest rates has virtually eliminated the losses, as it reduced the costs necessary to maintain the target range of the federal funds rate.
After reaching a ceiling of 5.25% to 5.5% in 2023, the federal funds rate is now between 3.75% and 4%. Signs of weakness in the labor market may pressure the Federal Reserve to implement further rate cuts in the coming months.
