According to The Kobeissi Letter, the Federal Reserve reported a $77.6 billion operating loss in 2024, which follows a significant $114.3 billion loss in 2023. Since Q4 2022, the cumulative operating losses have amounted to a staggering $224.4 billion. This situation arises as the central bank has disbursed hundreds of billions, impacting its financial stability and potentially influencing monetary policy decisions that could affect trading conditions.

According to The Kobeissi Letter, consumers spent a record $75.1 billion on 'Buy Now Pay Later' services in 2024, as 19.9% of US consumers used these services in 2023, per Philadelphia Fed. This trend highlights a growing reliance on debt to manage inflation pressures.

According to The Kobeissi Letter, the US government faced a significant financial challenge in 2023 with total costs amounting to $7.7 trillion against revenues of $4.5 trillion, highlighting a deficit that could place a public company on bankruptcy watch. This financial imbalance could have implications for bond markets and interest rates, which are critical for traders to monitor.