On March 21 local time, the audit results of the 2024 financial statements released by the Federal Reserve showed that the Fed's operating loss in 2024 was as high as 77.60 billion US dollars (about 560 billion yuan), the second consecutive year of large losses, and the loss in 2023 was as high as 114.50 billion US dollars. The analysis said that the main reason for the Fed's huge losses is its strong support for the economy during the epidemic in 2020 and 2021, and its sharp interest rate hikes in 2022 and 2023 in response to high inflation, which raised the base rate from near zero to a range of 5.25% - 5.5%. The Fed's income comes from the services it provides to banks and the interest it holds on bonds. According to the law, the Federal Reserve must turn over profits to the US Treasury. From 2011 to 2021, the Federal Reserve handed over nearly $1 trillion to the US Treasury, according to research from the St. Louis Fed. But Fed officials stressed that this indicator reflects a paper loss and does not affect its ability to conduct monetary policy.