2023: Federal Reserve records $114.3bn loss due to interest rate management expenses, up from $58.8bn net income in 2022.

The Federal Reserve reported a record $114.3bn loss in 2023, caused by expenses related to managing interest rates. This came after a $58.8bn net income in 2022. The central bank's move to increase the federal funds rate led to larger interest expenses. The Fed can create money to fund its operations when dealing with operating losses and captures its loss in a deferred asset. The deferred asset reached $157.8bn by March 2021.

March 26, 2024
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