Source: Macroeconomic Policy Nexus
by David Beckworth
“President Trump will soon announce his pick for the next Federal Reserve Chair. Whoever takes the helm will inherit a full plate of challenges from Jerome Powell: interest-rate decisions, balance-sheet runoff, payment-system reform, regulatory overhaul, growing political pressures, and more. One thing the new chair will not inherit, however, is a Federal Reserve still incurring operating losses. Yes, as our friend Bill Nelson first reported, the Fed is now generating net interest income for the first time since August 2022. … The primary reason for the recent losses is that the Fed’s interest expenses exceeded its interest income.” (12/08/25)
https://macroeconomicpolicynexus.substack.com/p/the-feds-losses-atlantas-lesson-and