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- The Federal Reserve's cumulative losses are massive
The Federal Reserve's cumulative losses are massive
The Fed is one of the few institutions that can lose hundreds of billions of Dollars with almost no consequences
Global Markets Investor
March 31, 2026
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GLOBAL MARKETS INVESTOR’S PORTFOLIO IS 🔥UP +97%🔥SINCE JANUARY 2024
DURING THE MARCH-APRIL 2025 MARKET TURMOIL, MAJOR US INDEXES FELL NEARLY 20%, WHILE THE GMI PORTFOLIO GAINED OVER 5%, FIND OUT HOW BELOW:
The Fed's cumulative losses, known as "deferred assets," sit at near a record $245 billion.
This represents the gap between what the Fed pays commercial banks in interest on their reserves and what it earns on its bond holdings.
The losses began in 2022 when the Fed aggressively raised interest rates to fight inflation, making its borrowing costs higher than its investment returns.
Meanwhile, the Fed reported an operating loss of -$18.7 billion in 2025.
Combined operating losses over the last 3 years total -$210.3 billion, with -$114.0 billion in 2023, -$77.6 billion in 2024, and -$18.7 billion in 2025.
As a result, the Fed has sent $0 to the US Treasury since September 2022, breaking a streak of remittances that totaled +$1.36 trillion from 2008 to 2022.
The Fed cannot become insolvent because it creates its own money, but the losses directly reduce revenue flowing to the US Treasury.
Without these remittances, the government must borrow more to fill the gap, adding to the national debt and increasing interest costs for taxpayers.
Analysts estimate it will take years before the Fed returns to profitability and resumes payments to the Treasury.
Taxpayers are footing the bill for the most expensive monetary policy experiment in history.
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