register US Federal Reserve (The Central Bank) in 2023 the largest operating loss in its 110-year history, and was unable to return almost anything to the treasury as it is supposed to do when it makes profits.
According to preliminary estimates by the US Central Bank, The loss amounted to $114.3 billion in 2023, compared to a profit of $58.8 billion in 2022.
This loss is associated with:
- Increased interest rates used by the Federal Reserve to reduce Inflation High, it forced him to pay more money in exchange for bank reserves, in addition to… Bonds Treasury andStocks Backed by the mortgages it holds, the Federal Reserve will pay $281.1 billion in interest in 2023, an increase of $178.7 billion from 2022.
- One of the Federal Reserve's sources of income declined last year, which is… the benefits Which he obtains from the bonds and stocks that he holds.
After heavy purchases during the “Covid-19” crisis to support the American economy, the Federal Reserve is currently reducing its portfolio.
As his portfolio's returns deteriorated, he received only $163.8 billion in interest in 2023, $6.2 billion less than the previous year.
In normal times, the Federal Reserve pays to the Treasury every week all of its profits after deducting its needs for the costs of operating its headquarters in Washington and the profits paid to its 12 subsidiary banks in the states, which make up the Federal Reserve System.
But when profits are not enough to cover these costs, the Federal Reserve becomes indebted to the Ministry of Economy and Finance and is counted as deferred assets.
The Federal Reserve will not resume paying money to the Treasury until it achieves a profit that allows it to cover this amount.
In 2023, the US Federal Reserve was unable to send more than $670 million to the Treasury, while the value of its deferred assets amounted to $116.4 billion, to which $16.6 billion was added from 2022, bringing the total to $133 billion.
In 2022, the Federal Reserve was able to pay $76 billion to the treasury, because it achieved a profit until September of the same year.