Fed's operating losses surge to record $114.3 billion in 2023

The Fed spent $114.3 billion more than it took in in 2023, its largest operating loss ever, and was forced to abandon sending money to the Treasury amid high interest rates. Interest expense, which includes reserve balances for the Fed's reverse repurchase operations, nearly tripled in 2023 to $281.1 billion, according to audited financial statements released Tuesday. Meanwhile, the Fed's interest income from its portfolio totaled $163.8 billion last year and will be about $170 billion in 2022.