Federal Reserve’s expenses exceeded its 2023 earnings by $114.3 billion: report

The Federal Reserve’s expenses rose above its earnings in 2023 by $114.3 billion, which is its biggest operating loss ever. 

This resulted in the U.S. central bank being forced to forgo remittances to the Treasury as interest rates increased, according to Bloomberg.

Preliminary financial statements that were released Friday showed that the Fed’s interest income earned on its portfolio of assets was $163.8 billion last year, in comparison with $170 billion in 2022.

The central bank's deficit of $114.3 billion was a result of attempts to fight inflation and stimulate the economy, The Wall Street Journal reports. The previous year the Fed had a positive income of $58.8 billion. 

The Fed started suspending remittance payments in Sept. 2022, something it had never done in its 109-year history for a meaningful period because of operating losses, according to the Journal. 

The Fed also announced that operating expenses at the regional banks, which are overseen by the Fed Board of Governors, were at $5.5 billion in 2023, according to the New York Post.