Fed's operating loss exceeds $100 billion
The U.S. Federal Reserve (Fed) reported that its total expenses exceeded its earnings by $114.3 billion in 2023.
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The Fed has released its audited annual financial statement for the past year. According to the statement from the bank, the Fed's total expenses in 2023 exceeded its earnings by $114.3 billion.
Thus, the bank recorded its largest operating loss to date.
While interest expenses on reserve balances of depository institutions rose to $176.8 billion last year, interest expenses related to repo operations amounted to $104.3 billion.
The interest income the bank earned from its asset portfolio decreased by $6.2 billion in 2023 compared to the previous year, falling to $163.8 billion.