New Delhi, Nov. 28 -- Everyone knows that the Federal Reserve made borrowing more expensive when it raised interest rates to fight inflation. Yet little attention is paid to the tide of red ink that higher rates brought to the bank itself.

It is time to look under the hood because there are signs that the central bank's books may be improving. That would put the Fed, now under political pressure, in a better light. It could also help the Treasury in years to come.

The Fed, the most powerful central bank in the world, has recorded significant losses. It logged a record $114.3 billion operating loss in 2023 and followed that up with a $77.6 billion loss in 2024. So far this year, it had lost $20.8 billion as of the end of September.

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