The Federal Reserve is now confronted with no less than $ 1.06 trillion on non -realized losses on its balance.
The New York Federal Reserve Bank, which handles the bond transactions of the FED, has just announced the losses and connected to the tight monetary attitude of the central bank.
The bonds of the FED lose value because the bank maintains higher interest rates of higher interest rates in a push to combat inflation.
The agency says it will ensure that the losses will touch the operating results or cash transfers to the treasury.
“The non -realized profit or loss position of the SOMA portfolio has no effect on the net income or the transfers of the Federal Reserve to the treasury, unless assets are sold and profits or losses are realized.
Non -realized profits and losses have no effect on implementing monetary policy. “
The New York Fed also notes that the non -realized losses, which are registered until the end of 2024, were somewhat compensated as the central banking bonds mature without re -investing.
The bond portfolio of the FED began to see considerable non -realized losses in the last two years, with $ 1.08 trillion in 2022 and $ 948.4 billion in 2023.
The account witnessed non -realized profit of $ 354 billion in 2020 and $ 127.9 billion in 2021.
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