The Federal Reserve today released 2021 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 $8.8 trillion at year-end, up $1.4 trillion from the prior year.
The Fed banks’ 2021 earnings were approximately $107.9 billion. A total of $109 billion was remitted to the U.S. Treasury in 2021. The Fed spent $5.3 billion on interest on depository institutions’ balances at the reserve banks, a decrease of $2.6 billion from the year prior. The banks’ operating expenses were $8.7 billion, including $2.6 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 $122.4 billion in interest income from securities acquired through open market operations, an increase of $21.6 billion from the prior year.