JPMorgan Allegedly Utilizes Over $200 Billion from Federal Reserve Account to Acquire US Treasuries for Enhanced Yield Lock-in in Last Two Years

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Dec 18 2025

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Source: aastocks

JPMorgan's Federal Reserve Withdrawals: Since 2023, JPMorgan has withdrawn nearly US$350 billion from its Federal Reserve account, reducing its balance from US$409 billion to US$63 billion by 3Q25, while increasing its US Treasury holdings from US$231 billion to US$450 billion.
Interest Rate Strategy: The bank's strategy to invest in US debt was aimed at countering profit erosion due to interest rate cuts, as the Federal Reserve's interest rate decision for December 2025 is set at 3.75%, down from 4.0%.
Comparison with Competitors: Unlike Bank of America, which faced significant losses from long-term bonds during low interest rates in 2020 and 2021, JPMorgan avoided such investments, allowing it to benefit from higher yields before the central bank's rate cuts.
Market Context: The article highlights JPMorgan's proactive financial management in a changing interest rate environment, contrasting its performance with that of its competitors in the banking sector.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.