The Federal Reserve's book loss exceeded the $200 billion mark, which may push interest rates to continue to fall

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ODAILY
10-04
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Odaily Odaily News According to data released by the Federal Reserve on Thursday, the Federal Reserve's losses this week exceeded the $200 billion mark. The Fed reported that as of Wednesday, the level of so-called profits it remitted to the Treasury was negative $201.2 billion. The figure represents a book loss, and Fed officials pointed out that this will not harm their ability to implement monetary policy. Chicago Fed President Goolsbee reiterated on Thursday that interest rates need to be "substantially" lowered next year. With the Fed's recent 50 basis point rate cut and the prospect of further easing, the pace of future loss growth may slow as the level of interest expenses required to maintain interest rate targets will be reduced. However, before the Fed returns the cash to the Treasury, it must effectively repay the deferred assets, which may take several years. (Jinshi)

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