The Federal Reserve seems to be nearing the end of significant losses, allowing potential cash returns to the Treasury. Morgan Stanley indicated that with the current breakeven rate at 4.8%, based on a 2.66% average coupon, the Fed might soon stabilize financially.

Losses have dropped dramatically from 114.6 billion USD in 2023 to 77.5 billion USD in 2024. The Fed has created a deferred asset worth 224.4 billion USD to manage prior losses, indicating that through strategic financial maneuvers, profitability may be just around the corner.