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On March 21 local time, the audit results of the Federal Reserve's 2024 financial statement showed that the Fed suffered an operating loss of up to $776 billion (approximately RMB 5.6 trillion) in 2024, marking a large deficit for the second consecutive year, with a loss of up to $1145 billion in 2023. Analysts say that the main reason for the Fed's huge losses is its strong support for the economy during the pandemic in 2020 and 2021, as well as its significant interest rate hikes in response to high inflation in 2022 and 2023, raising benchmark interest rates from near zero to between 5.25% and 5.5%. The Fed's income comes from services provided to banks and interest on bonds it holds. According to law, profits must be handed over by Federal Reserve Banks to US Treasury Department. According to research by St Louis Federal Reserve Bank, from years between2011-2021 nearly one trillion dollars was remitted by Federal Reserve Banks towards US Treasury Department . However,Fed officials emphasize that this indicator reflects book losses and will not affect their ability implement monetary policy.