Startup woes: Funding drops by $1.2 billion from last March

Federal Reserve Posts Massive, $114 Billion , Loss in 2023. On March 26, the Federal Reserve announced a record-breaking net negative income of $114.3 billion in 2023. Reuters reports that the loss follows $58.8 billion in net income in 2022. . Since releasing the numbers, the Fed has stressed that negative net income does not impede its ability to operate. Since releasing the numbers, the Fed has stressed that negative net income does not impede its ability to operate. As a result of low rates and large levels of bond holdings, the Fed has earned significant profits in recent years. Last year, the Fed's audited interest expenses for banks' reserve balances reached $176.8 billion, an increase of over $116 billion from 2022. In 2023, the Fed's interest payouts from its reverse repo facility were $104.33 billion, increased from $41.9 billion the year before. Reuters reports that the Fed creates funds when dealing with operating losses, capturing its loss in an accounting device known as a deferred asset. Reuters reports that the Fed creates funds when dealing with operating losses, capturing its loss in an accounting device known as a deferred asset. At the close of 2023, the deferred asset stood at $133.3 billion. As of March 20 of this year, that number had risen to $157.8 billion with no indication of how much larger it could get. Last year, a St. Louis Fed report forecast that it could take years before the Fed can return to profitability and reduce the country's deferred asset. Last year, a St. Louis Fed report forecast that it could take years before the Fed can return to profitability and reduce the country's deferred asset