Federal Reserve posts largest operating loss ever
As of March 21, the Fed owed $157.8 billion to an accounting device, a “deferred asset”
The US Federal Reserve System’s expenses exceeded its income by $114.3 billion in 2023. It was the largest operating loss the Fed has ever experienced.
Like other major central banks, the combination of the Fed’s hiking cycle and large balance sheet heavily impacted its budget last year.
The interest expense the Fed paid on reserve balances rose by $116.4 billion to $176.8 billion from 2022 to 2023.
It also paid $104.3 billion interest on its repos, $62.4 billion more than in 2022.
The interest
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