Federal Reserve reverses three-year trend of financial losses

The Federal Reserve has reversed a three-year trend of financial losses, with its deferred asset shrinking. Data shows the Fed's deferred asset decreased from $243.8 billion to $243.2 billion between November 5 and 26, indicating a shift towards profitability. This change follows the Fed's pandemic-era bond purchases and subsequent interest rate hikes, which led to accounting losses before recent rate adjustments began to mitigate them.