The Fed's reasons for existing have nothing to do with making money, nor with having assets (bond holdings) that exceed its liabilities (monetary obligations). Profits and positive equity are not even goals of the Fed. If you read the Fed board minutes, you'll find that board members don't even discuss profits.
The Fed's actual goals are: (1) to maximize employment as much as possible, while (2) keeping prices reasonably stable (i.e., not rising too much each year), and (3) promoting the stability of the financial system as much as possible.
If they conclude that they have to raise rates much higher and continue to withdraw liquidity from financial markets to bring inflation under control, they will do it -- even if it means inflicting a painful recession.
The Fed's actual goals are: (1) to maximize employment as much as possible, while (2) keeping prices reasonably stable (i.e., not rising too much each year), and (3) promoting the stability of the financial system as much as possible.
If they conclude that they have to raise rates much higher and continue to withdraw liquidity from financial markets to bring inflation under control, they will do it -- even if it means inflicting a painful recession.