Editing Federal Reserve (section)

===Remittance payments to the Treasury===
[[File:Remittances.webp|thumb|300px|Federal Reserve remittances to the [[United States Treasury|U.S. Treasury]] (annually)]]
[[File:Federal Reserve Remittences to the Treasury.webp|thumb|300px|Federal Reserve Remittances to the [[United States Treasury|Treasury]] (weekly)]]

The Federal Reserve has been [[remitting]] interest that it has been receiving back to the [[United States Treasury]]. Most of the assets the Fed holds are [[United States Treasury security|U.S. Treasury bonds]] and [[mortgage-backed securities]] that it has been purchasing as part of [[quantitative easing]] since the [[2008 financial crisis]]. In 2022, the Fed started [[quantitative tightening]] (QT) and selling these assets and taking a loss on them in the [[secondary market|secondary]] [[bond market]]. As a result, the nearly $100{{nbsp}}billion that it was remitting annually to the Treasury, is expected to be discontinued during QT.<ref>{{cite news|url=https://www.bloomberg.com/news/articles/2022-10-10/it-s-official-the-fed-s-in-the-red|title=It's Official: The Fed's in the Red|work=Bloomberg|last=Alloway|first=Tracy|date=October 10, 2022}}</ref><ref>{{cite news | url=https://www.ft.com/content/ddc5d867-59fe-4c9b-a588-4066304318b6 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/ddc5d867-59fe-4c9b-a588-4066304318b6 |archive-date=December 10, 2022 |url-access=subscription | title=Are central banks going bankrupt? | newspaper=Financial Times | date=October 10, 2022 |last=Wigglesworth|first=Robin}}</ref>

In 2023, the Federal Reserve reported a net negative income of $114.3 billion.<ref>{{cite web |url=https://www.reuters.com/markets/us/fed-says-official-net-negative-income-was-1143-billion-2023-2024-03-26/ |title=Fed posts record loss of $114.3 billion in 2023 |last=Derby |first=Michael |date=2024-03-26 |website=Macro Matters |publisher=Reuters |access-date=2024-03-27}}</ref> This triggered the creation of a deferred asset liability on the Federal Reserve balance sheet booked as "Interest on Federal Reserve notes due to U.S. Treasury" totaling $133.3 billion.<ref>{{cite journal |last1=Carpenter |first1=Seth |last2=Ihrig |first2=Jane |last3=Klee |first3=Elizabeth |last4=Quinn |first4=Daniel |last5=Boote |first5=Alexander |date=2012-08-01 |title=The Federal Reserve's Balance Sheet and Earnings: A Primer and Projections |url=https://www.ijcb.org/journal/ijcb15q2a7.pdf |journal=Finance and Economics Discussion Series |publisher=Federal Reserve Board |pages=245–246 |access-date=2024-03-27}}</ref> The deferred asset is the amount of net excess revenues the Federal Reserve must realize before remittances can continue. It does not have any impact on the ability of the Federal Reserve to conduct monetary policy or meet its obligations.<ref>{{cite press release |title=Federal Reserve Board releases annual audited financial statements |url=https://www.federalreserve.gov/newsevents/pressreleases/other20240326a.htm |publisher=Board of Governors of the Federal Reserve System |date=2024-03-26 |access-date=2024-03-27}}</ref> The Federal Reserve has estimated the deferred asset will last until mid-2027.<ref>{{cite web |url=https://www.stlouisfed.org/on-the-economy/2023/nov/fed-remittances-treasury-explaining-deferred-asset |title=The Fed's Remittances to the Treasury: Explaining the 'Deferred Asset' |last1=Faria e Castro |first1=Miguel |last2=Jordan-Wood |first2=Samuel |date=2023-11-21 |website=On The Economy Blog |publisher=Federal Reserve Bank of St. Louis |access-date=2024-03-27}}</ref>