12:14 PM EDT, 03/26/2024 (MT Newswires) -- The Federal Reserve reported Tuesday a net loss of $114.3 billion in 2023, while experiencing a drop in income that it earned on its securities holdings.

The central bank reported net income of $58.8 billion in 2022.

The Fed held $7.5 trillion in US Treasury and agency securities at the end of 2023. Interest earnings on securities from open market operations was $163.8 billion, down $6.2 billion from a year earlier.

Interest paid on banks' reserve balances rose to $176.8 billion, up $116.4 billion from the previous year. At the same time, interest earnings on loans that the Fed made directly to borrowers totaled $10.4 billion.

The Fed recorded a deferred asset of $133.3 billion in 2023, representing the amount needed to be earned in excess earnings before the Fed can send additional earnings to the Treasury under statute.