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

ME News, On Monday, April 15 (UTC+8), in the local time of the New York Fed, the U.S. Federal Reserve said that the unrealized losses on the Fed’s massive bond holdings last year had narrowed compared with 2024. The book loss for 2025 was $844.2 billion, down from $1.06 trillion in 2024. This figure was disclosed when the System Open Market Account (SOMA) annual report was released. The account covers a large amount of cash, bonds, and other assets held by the Federal Reserve. The Fed’s unrealized losses on its bond holdings are mainly accounting entries. In the view of the Federal Reserve and many observers, such paper losses do not affect the Fed’s operations, because there are no plans to sell the held U.S. Treasuries and mortgage-backed securities. As long as they are held to maturity, they will not result in actual losses relative to the purchase price. However, some people believe that these paper losses reflect a negative track record of the Fed’s use of 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)