The Federal Reserve has ended its three-year streak of losses, according to recent data showing profitability since early November. This shift is expected to gradually offset prior accounting losses. Additionally, the size of the Federal Reserve’s deferred assets has decreased, from $243.8 billion on November 5th to $243.2 billion by November 26th. The reduction in interest rates has largely resolved the Fed’s previous financial challenges associated with maintaining the federal funds rate target range. It peaked at 5.25% to 5.5% in 2023, but is currently maintained at 3.75% to 4%. Continued concerns about labor market conditions could lead to further interest rate reductions by the Federal Reserve in the near future.