Sharp increases in Federal Reserve System earnings and Reserve Bank assets are reported in 2021 audited financial statements released Monday by the central bank.
Highlights from the statements show an increase of $19.4 billion in central bank earnings in 2021, which totaled $107.9 billion. Reserve Banks’ total assets rose $1.4 trillion over the past year to $8.8 trillion.
The Fed also noted:
- Remittances to the U.S. Treasury were $109.0 billion in 2021, as compared to $86.9 billion in 2020;
- Interest income on securities acquired through open market operations totaled $122.4 billion in 2021, an increase of $21.6 billion from 2020;
- Interest expense on depository institutions’ reserve balances was $5.3 billion in 2021, a decrease of $2.6 billion from 2020;
- Losses from the daily revaluation of foreign currency denominated investments were $1.9 billion in 2021, as compared to $1.5 billion gain in 2020, resulting in a year over year decrease of $3.4 billion;
- Net income from facilities related to the Federal Reserve’s pandemic response was $275.0 million in 2021; and
- Operating expenses were $8.7 billion in 2021, including assessments of $2.6 billion for Board expenses, currency costs, and the operations of the Consumer Financial Protection Bureau.
Transfers to the CFPB in 2021 totaled $627.5 million, up from $517.3 million in 2020, the statements show.