U.S. Federal Reserve Faces Severe Deficit as Interest Expenses Surge in 2023

On January 12th, local time, preliminary data released by the U.S. Federal Reserve reveals a significant increase in interest expenses in 2023, leading to a serious deficit for the Fed. According to reports, the Fed's income, excluding expenditures, was negative $114.3 billion in 2023, compared to a positive $58.8 billion in 2022. The deficit is attributed to the surge in interest expenses resulting from the Federal Reserve's interest rate hikes.