---
title: "According to reports, JPMorgan has used over $200 billion from the Federal Reserve account in the past two years to buy U.S. Treasury bonds to lock in high interest rates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/270091870.md"
description: "Since 2023, JPMorgan Chase has withdrawn nearly $350 billion from the Federal Reserve account, primarily to purchase U.S. Treasuries to lock in high yields. Its holdings of U.S. Treasuries have increased from $231 billion to $450 billion. Unlike its competitors, JPMorgan Chase avoided investing in long-term bonds when interest rates were low. A stable deposit base has allowed it to achieve higher returns during periods of high interest rates"
datetime: "2025-12-18T02:03:54.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/270091870.md)
  - [en](https://longbridge.com/en/news/270091870.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/270091870.md)
---

# According to reports, JPMorgan has used over $200 billion from the Federal Reserve account in the past two years to buy U.S. Treasury bonds to lock in high interest rates

The Financial Times reported that JPMorgan Chase (JPM.US) has withdrawn nearly $350 billion from its Federal Reserve account since 2023, investing most of it in U.S. Treasuries to counteract the erosion of profits from interest rate cuts.

The report cites BankRegData data, indicating that JPMorgan's balance in its Federal Reserve account decreased from $409 billion at the end of 2023 to $63 billion in the third quarter of this year. During this period, the bank's holdings of U.S. Treasuries increased from $231 billion to $450 billion, allowing it to lock in higher yields before the central bank's interest rate cuts.

The report notes that JPMorgan avoided significant investments in long-term bonds during the low interest rates of 2020 and 2021, unlike competitors such as Bank of America (BAC.US), which suffered severe paper losses when interest rates surged in 2022. It also mentions that JPMorgan's stable deposit base allowed it to earn returns from the Federal Reserve that far exceeded the interest paid on deposits during the high interest rate period

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