NEW YORK - The Federal ReserveFederal Reserve said on Friday that rising interest costs cut into the amount of money it handed back to the Treasury last year compared to what it handed back in 2021.
The Fed returned $76 billion to the Treasury last year, down from $109 billion the year before, as part of an audited financial statement released Friday. It first published updated figures in January.
The Fed said it earned $58.8 billion last year, compared to $107.9 billion in 2021. The Fed left it with $16.6 billion deferred asset by the end of the year, which is what is essentially a loss for the central bank, due to rising costs related to interest. It hasn't been affected by the loss in its ability to operate or conduct monetary policy.
The Fed returns profits after covering operating expenses to the Treasury. The Fed has lifted its short-term rate target aggressively over the last year, which has sharply increased the interest rates it pays banks, money funds and others to keep cash at the central bank.