Total assets of the Federal Reserve Banks as of Dec. 31, 2023, were approximately $7.8 trillion, a decrease of $0.7 trillion from the previous year, according to the Fed’s combined annual audited financial statements for the year, released today. The audit also showed that the Reserve Banks’ operating losses were $114.3 billion last year, compared to $58.5 billion in net income the previous year.
Among other things, the audit showed that interest expense on depository institutions’ reserve balances was $176.8 billion in 2023, an increase of $116.4 billion from 2022. Total interest income earned on loans to depository institutions and other eligible borrowers, including from the Bank Term Funding Program and Paycheck Protection Program Liquidity Facility, was $10.4 billion. Interest expense on securities sold under repo agreements was $104.3 billion in 2023, an increase of $62.4 billion from 2022. Operating expenses were $9.2 billion in 2023, including assessments of $2.9 billion for Fed board expenses, currency costs and CFPB operations.