Fed Releases Audited Financial Statements

The Federal Reserve today released 2020 financial statements—independently audited by KPMG—for the combined system, including the 12 Federal Reserve Banks and the Board of Governors. The Fed banks held a combined $7.4 trillion at year-end, up $3.2 trillion from the prior year.

The Fed banks’ 2020 earnings were approximately $88.6 billion. A total of $86.9 billion was remitted to the U.S. Treasury in 2020. The Fed spent $7.9 billion on interest on depository institutions’ balances at the reserve banks, a decrease of $27.1 billion from the year prior. The banks’ operating expenses were $7.9 billion, including $2.3 billion assessed to cover currency costs, operations of the Board of Governors and the operations of the Consumer Financial Protection Bureau.

The Fed banks earned $101.2 billion in interest income from securities acquired through open market operations, a decline of $1.6 billion from the prior year.