The Federal Reserve today released 2022 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 $8.6 trillion at year-end, down $187 billion from the prior year.
The Fed banks’ 2022 earnings were approximately $58.8 billion. During 2022, the Reserve Banks transferred $76 billion from weekly earnings as compared to $109 billion in 2021, and in the fall, they first suspended weekly remittances to the Treasury and began accumulating a deferred asset, which totaled $16.6 billion by the end of the year.
The Fed spent $60.4 billion on interest on depository institutions’ balances at the reserve banks, an increase of $55.1 billion from the year prior. The banks’ operating expenses were $9.2 billion, including $2.8 billion assessed to cover currency costs, operations of the board and the operations of the Consumer Financial Protection Bureau.