Cut below from the H.8 highlighting nsa Urealized Gains on Available for Sale Securities have already turned positive during the current debt ceiling induced bond rally.
If Fed reduces the policy rate this month/year then this gain should perhaps increase an additional 10s of $B based on the magnitude of last year losses you can see here when Fed was doing a quarterly series of 0.25% increases.
Rate cuts this year should have perhaps the opposite effect and then we can observe the changes induced in risk asset prices which should ideally increase if we get big unrealized gains here due to a reversal in interest rate policy...
