Federal Reserve posts largest operating loss ever

As of March 21, the Fed owed $157.8 billion to an accounting device, a “deferred asset”

Balance sheet

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account