Fed releases audited financial statements

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.