NY Fed Says Net Income Could Be Negative Through Most of 2025

Total net income from the Federal Reserve’s System Open Market Account could remain negative on an annual basis in 2025 before returning to positive levels as early as next year, according to new projections from the New York Fed.

“In this exercise, SOMA net income remains negative through most of 2025 because the interest expenses on reserve balances, certain other deposits” and reverse repurchase agreements “are higher than the income earned,” the New York Fed said in a report released Tuesday.