"Federal Reserve Reports Record Annual Operating Loss"

The Federal Reserve reported its largest-ever annual operating loss of $114.3 billion, attributed to its aggressive support for the economy in 2020 and 2021, followed by a rise in interest rates to combat high inflation. These losses contribute to federal deficits, leading to larger Treasury debt auctions. The central bank's losses may persist as long as short-term interest rates remain at current levels, potentially sparking political criticism.