The Federal Reserve's unrealized losses on bond holdings narrowed to less than $850 billion last year.

ME News report, April 15 (UTC+8), Monday local time in New York, said that last year the Federal Reserve’s unrealized losses on its huge bond holdings narrowed compared with 2024, with a book loss of $844.2 billion in 2025, versus $1.06 trillion in 2024. This figure was disclosed when the System Open Market Account (SOMA) annual report was released. The account covers the large amount of cash, bonds, and other assets held by the Federal Reserve. The unrealized losses on the Federal Reserve’s bond holdings are mainly accounting in nature. In the view of the Federal Reserve and many observers, such paper losses do not affect the Federal Reserve’s operations, because there are no plans to sell the U.S. Treasuries and mortgage-backed securities it holds. As long as the holdings are held to maturity, they will not result in actual losses relative to their purchase price. However, some believe that these paper losses reflect a negative track record of the Federal Reserve using its balance sheet as a tool for market stabilization and stimulus, and argue that these losses could theoretically turn into real problems in the future. (Source: Jin10)