The Fed's operating loss last year was $114.3 billion

The US Federal Reserve (Fed) announced that its total expenses exceeded its earnings by $114.3 billion in 2023. The Fed has published its annual audited balance sheet for last year. According to the statement made by the bank, the Fed’s total expenses exceeded its earnings by $114.3 billion in 2023. Thus, the bank recorded its largest operating loss to date. While the interest expense on reserve balances of depository institutions increased to $176.8 billion last year, the interest expense related to repo operations was $104.3 billion. The interest income obtained by the bank from its asset portfolio decreased by $6.2 billion compared to the previous year, to $163.8 billion in 2023.