The Federal Reserve (Fed) has reported losses exceeding $100 billion, with experts predicting a $200 billion “peak” loss by 2025.

The Fed records its losses in a deferred asset, which includes future payments before delivering earnings to the Treasury.

The Fed has not surprised by the loss, as it has been pushing to raise interest rates, which has raised the benchmark overnight interest rate from near-zero in March 2022 to 5.25%-5.50%.