BREAKING: The Federal Reserve reported an operating loss of -$18.7 billion in 2025, marking its 3rd consecutive annual loss. This brings the total 3-year loss to -$210.3 billion after the -$77.6 billion recorded in 2024 and -$114.0 billion in 2023.

The losses are primarily driven by the Fed paying out more in interest to banks and money market funds than it earns from its bond and MBS holdings.

Since the losses began in September 2022, the Fed has stopped remitting income to the Treasury Department, ending a streak that totaled +$1.36 trillion since 2008.

However, the Fed cannot become insolvent because it quite literally creates its own money.

Truly incredible.