How Can One Understand the Federal Reserve’s Nearly $200 Billion in Losses?

These losses have been racked month by month — every month — since 2022.

National Portrait Gallery via Wikimedia Commons
Henry William Pickersgill's portrait of Sir Robert Peel, detail. National Portrait Gallery via Wikimedia Commons

Can you understand how it can be that the Federal Reserve, the world’s greatest and by far most important central bank, has now lost the astounding sum of $193 billion?  If not, one is surely not alone. Since September 2022, the Fed has lost money  every month.  These unprecedented losses continue, and this fall they will in the aggregate pass $200 billion.

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