[The Federal Reserve's Bond Portfolio Unrealized Loss Narrowed to Less Than $850 Billion Last Year] According to a report by Jinse Finance, on April 14, the New York Federal Reserve stated on Monday local time that the Federal Reserve's unrealized losses on its massive bond portfolio narrowed last year compared to 2024. The book loss for 2025 was $844.2 billion, compared to $1.06 trillion in 2024. This data was disclosed in the annual report of the System Open Market Account (SOMA), which covers the Federal Reserve's holdings of large amounts of cash, bonds, and other assets. The unrealized losses on the Federal Reserve's bond portfolio are primarily accounting-related. In the view of the Federal Reserve and many observers, such book losses do not impact the Fed's operations, as it has no plans to sell its holdings of U.S. Treasury bonds and mortgage-backed securities. As long as these are held to maturity, there will be no actual losses relative to the purchase price. However, some believe that these book losses reflect a negative track record of the Federal Reserve in using its balance sheet as a tool for market stability and stimulus. They argue that these losses could theoretically translate into real issues in the future.