Internet reports that on March 21, local time, the audit results of the 2024 financial statements released by the Federal Reserve showed that the Federal Reserve's operating loss in 2024 reached US$77.6 billion (approximately RMB 560 billion), a large loss for the second consecutive year, and in 2023 The annual loss reached US$114.5 billion. Analysts said that the main reasons for the Federal Reserve's huge losses were 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, raising the benchmark interest rate from close to zero to the range of 5.25%-5.5%. The Fed's income comes from services it provides to banks and interest on bonds it holds. By law, the Fed must turn profits over to the U.S. Treasury. According to research by the Federal Reserve Bank of St. Louis, from 2011 to 2021, the Federal Reserve paid nearly $1 trillion to the U.S. Treasury. However, Fed officials stressed that this indicator reflects paper losses and will not affect its ability to implement monetary policy.