Press Release
☷Federal Reserve Board announces preliminary financial information for the Federal Reserve Banks income and expenses in 2023
Federal Reserve System ( By Press Release office)
Jan 14,2024
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The Fed just dropped some early financial deets for the income and expenses of the Fed Banks in 2023 . The official financial statements are still being checked out and might have some changes compared to these initial numbers . The important information regarding the 2023 Reserve Bank ' s budgetary outcomes is as follows: - The total expenses of the Reserve Banks in 2023 exceeded estimated revenues by $114 . 3 billion . In 2022 , the net profit was $58 . 8 billion . - The interest income from securities acquired through open market operations in 2023 amounted to $163 . 8 billion , a decrease of $6 . 2 billion compared to interest income of $170 . 0 billion in 2022 . - The total interest expenses in 2023 amounted to $281 . 1 billion , an increase of $178 . 7 billion compared to total interest expenses of $102 . 4 billion in 2022 . Of this increase , $116 . 3 billion was for interest expenses on bank reserves and $62 . 4 billion was for interest expenses on securities sold under repurchase agreements . - The total interest earned from loans to banks and other eligible borrowers , including the Bank Term Funding Program and the Paycheck Protection Program Liquidity Facility , was $10 . 4 billion . - The operating expenses of the Reserve Banks , minus amounts reimbursed by the US government and other agencies for services rendered as fiscal agents , amounted to $5 . 5 billion in 2023 . - The Reserve Banks were allocated $1 . 0 billion for the costs of currency production , issuance , and retirement; $1 . 1 billion for expenses of the Board; and $0 . 7 billion to fund the operations of the Consumer Financial Protection Bureau . - The Reserve Banks generated a net profit of $0 . 1 billion from emergency lending facilities established during the COVID - 19 pandemic . - Additional revenue was generated from payment and settlement services amounting to $0 . 5 billion . - The statutory dividends amounted to $1 . 5 billion in 2023 . So , according to the Federal Reserve Act , the Reserve Banks have to give any extra money they make to the U . S . Treasury after taking care of their costs and payments . But if they don ' t make enough money , they record it as a deferred asset . In 2023 , the Reserve Banks added $116 . 4 billion to the deferred asset , making it a total of $133 . 0 billion for the year . This deferred asset just means that the Reserve Banks have to make that money back before they can start giving money to the U . S . Treasury again . But don ' t worry , it doesn ' t affect the Federal Reserve ' s money plans or their ability to pay their bills . Take a look at the attached chart to see how much money the Reserve Banks have given to the U . S . Treasury from 2014 to 2023 ( estimated ) . If you have any questions from the media , just shoot an email to [email protected] or give us a call at 202 - 452 - 2955 .
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