Federal Reserve Posts Massive, $114 Billion , Loss in 2023.<br />On March 26, the Federal Reserve <br />announced a record-breaking net <br />negative income of $114.3 billion in 2023.<br />Reuters reports that the loss follows <br />$58.8 billion in net income in 2022. .<br />Since releasing the numbers, <br />the Fed has stressed that negative net <br />income does not impede its ability to operate.<br />Since releasing the numbers, <br />the Fed has stressed that negative net <br />income does not impede its ability to operate.<br />As a result of low rates and large <br />levels of bond holdings, the Fed has <br />earned significant profits in recent years.<br />Last year, the Fed's audited interest expenses for <br />banks' reserve balances reached $176.8 billion, <br />an increase of over $116 billion from 2022.<br />In 2023, the Fed's interest payouts from <br />its reverse repo facility were $104.33 billion, <br />increased from $41.9 billion the year before.<br />Reuters reports that the Fed creates funds when <br />dealing with operating losses, capturing its loss<br />in an accounting device known as a deferred asset.<br />Reuters reports that the Fed creates funds when <br />dealing with operating losses, capturing its loss<br />in an accounting device known as a deferred asset.<br />At the close of 2023, the deferred <br />asset stood at $133.3 billion.<br />As of March 20 of this year, that number <br />had risen to $157.8 billion with no <br />indication of how much larger it could get.<br />Last year, a St. Louis Fed report forecast that it <br />could take years before the Fed can return to <br />profitability and reduce the country's deferred asset.<br />Last year, a St. Louis Fed report forecast that it <br />could take years before the Fed can return to <br />profitability and reduce the country's deferred asset
