(Reuters) - The Federal Reserve said Tuesday that it officialy saw a net negative income of $114.3 billion in 2023, a record loss tied to expenses related to managing its short-term interest rate target.

The loss last year follows $58.8 billion in net income in 2022, the Fed said. The numbers released Tuesday were an audited tally following preliminary numbers reported earlier this year. The Fed has stressed repeatedly that net negative income does not impede its ability to operate or conduct monetary policy.

By law, the Fed hands over any profits after covering operational expenses to the Treasury. The Fed earns income from services it provides the financial system and from interest income on securities it owns. It has earned significant profits over recent years.