The Federal Reserve's balance sheet has undergone significant changes since 2007, reflecting its response to major economic crises. From a modest *** trillion U.S. dollars at the end of 2007, it ballooned to approximately **** trillion U.S. dollars by June 2025. This dramatic expansion, particularly during the 2008 financial crisis and the COVID-19 pandemic - both of which resulted in negative annual GDP growth in the U.S. - showcases the Fed's crucial role in stabilizing the economy through expansionary monetary policies. Impact on inflation and interest rates The Fed's expansionary measures, while aimed at stimulating economic growth, have had notable effects on inflation and interest rates. Following the quantitative easing in 2020, inflation in the United States reached ***** percent in 2022, the highest since 1991. However, by *************, inflation had declined to *** percent. Concurrently, the Federal Reserve implemented a series of interest rate hikes, with the rate peaking at **** percent in ***********, before the first rate cut since ************** occurred in **************. Financial implications for the Federal Reserve The expansion of the Fed's balance sheet and subsequent interest rate hikes have had significant financial implications. In 2023, the Fed reported a negative net income of ***** billion U.S. dollars, a stark contrast to the ***** billion U.S. dollars profit in 2022. This unprecedented shift was primarily due to rapidly rising interest rates, which caused the Fed's interest expenses to soar to over *** billion U.S. dollars in 2023. Despite this, the Fed's net interest income on securities acquired through open market operations reached a record high of ****** billion U.S. dollars in the same year.

View the total value of the assets of all Federal Reserve Banks as reported in the weekly balance sheet.

Graph and download economic data for Reserves of Depository Institutions: Total (TOTRESNS) from Jan 1959 to May 2025 about adjusted, reserves, and USA.

In the United States, the average discount rate of the Federal Reserve Bank of New York decreased overall, albeit with fluctuation, between 1990 and 2021. In 2021, the discount rate averaged 0.25 percent - a decrease from the previous year, when the average discount rate was 0.58 percent. At the beginning of the time period under observation, the discount rate of the Federal Reserve Bank of New York averaged about seven percent, so there has been an overall decrease of around 6.75 percent since then.

United States - Federal Reserve Bank Held Gold Bullion: On Display was 1993.32100 Fine Troy Ounces in May of 2025, according to the United States Federal Reserve. Historically, United States - Federal Reserve Bank Held Gold Bullion: On Display reached a record high of 2393.35200 in October of 2021 and a record low of 1993.31900 in February of 2012. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Federal Reserve Bank Held Gold Bullion: On Display - last updated from the United States Federal Reserve on July of 2025.

The U.S. federal funds effective rate underwent a dramatic reduction in early 2020 in response to the COVID-19 pandemic. The rate plummeted from 1.58 percent in February 2020 to 0.65 percent in March, and further decreased to 0.05 percent in April. This sharp reduction, accompanied by the Federal Reserve's quantitative easing program, was implemented to stabilize the economy during the global health crisis. After maintaining historically low rates for nearly two years, the Federal Reserve began a series of rate hikes in early 2022, with the rate moving from 0.33 percent in April 2022 to 5.33 percent in August 2023. The rate remained unchanged for over a year, before the Federal Reserve initiated its first rate cut in nearly three years in September 2024, bringing the rate to 5.13 percent. By December 2024, the rate was cut to 4.48 percent, signaling a shift in monetary policy in the second half of 2024. In January 2025, the Federal Reserve implemented another cut, setting the rate at 4.33 percent, which remained unchanged throughout the following months. What is the federal funds effective rate? The U.S. federal funds effective rate determines the interest rate paid by depository institutions, such as banks and credit unions, that lend reserve balances to other depository institutions overnight. Changing the effective rate in times of crisis is a common way to stimulate the economy, as it has a significant impact on the whole economy, such as economic growth, employment, and inflation. Central bank policy rates The adjustment of interest rates in response to the COVID-19 pandemic was a coordinated global effort. In early 2020, central banks worldwide implemented aggressive monetary easing policies to combat the economic crisis. The U.S. Federal Reserve's dramatic reduction of its federal funds rate - from 1.58 percent in February 2020 to 0.05 percent by April - mirrored similar actions taken by central banks globally. While these low rates remained in place throughout 2021, mounting inflationary pressures led to a synchronized tightening cycle beginning in 2022, with central banks pushing rates to multi-year highs. By mid-2024, as inflation moderated across major economies, central banks began implementing their first rate cuts in several years, with the U.S. Federal Reserve, Bank of England, and European Central Bank all easing monetary policy.

The weekly average value of U.S. Treasury securities held by Federal Reserve Banks in the United States decreased since the second half of 2022, after a period of sharp increase in 2020 and 2021. As of the end of May 2024, the weekly average value of U.S. Treasury securities held by the Federal Reserve amounted to roughly 4.5 trillion U.S. dollars.

The weekly average value of mortgage-backed securities held by Federal Reserve Banks in the United States decreased in the second half of 2022 and the first half of 2023, after a period of sharp increase in 2020 and 2021. As of ************, the weekly average value of mortgage-backed securities held by the Federal Reserve amounted to roughly **** trillion U.S. dollars.

United States - Compensation of employees: Domestic private industries: Federal Reserve banks, credit intermediation, and related activities was 349473.00000 Mil. of $ in January of 2023, according to the United States Federal Reserve. Historically, United States - Compensation of employees: Domestic private industries: Federal Reserve banks, credit intermediation, and related activities reached a record high of 349519.00000 in January of 2021 and a record low of 123372.00000 in January of 1998. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Compensation of employees: Domestic private industries: Federal Reserve banks, credit intermediation, and related activities - last updated from the United States Federal Reserve on June of 2025.

The total interest expense of the Federal Reserve (Fed) increased drastically from **** billion U.S. dollars in 2021 to ****** billion U.S. dollars in 2022, and this trend continued in 2023, when the Fed's interest expense exceeded *** billion U.S. dollars. This was by far the highest interest expense reported during the observed period. As the Federal Reserve pays interest on the reserves banks keep at them, the interest expense of the Federal Reserve rocketed due to the sharply increasing interest rates in 2023.

United States PF: CC: FI: Federal Reserve Banks data was reported at 12.500 USD bn in 2021. This records an increase from the previous number of 11.000 USD bn for 2020. United States PF: CC: FI: Federal Reserve Banks data is updated yearly, averaging 1.400 USD bn from Dec 1947 (Median) to 2021, with 75 observations. The data reached an all-time high of 12.500 USD bn in 2021 and a record low of 0.000 USD bn in 1950. United States PF: CC: FI: Federal Reserve Banks data remains active status in CEIC and is reported by Bureau of Economic Analysis. The data is categorized under Global Database’s United States – Table US.A235: NIPA 2018: Net Stock of Private Fixed Assets: by Industry: Current Cost.

United States PF: HC: FI: Federal Reserve Banks data was reported at 6.600 USD bn in 2021. This records an increase from the previous number of 6.400 USD bn for 2020. United States PF: HC: FI: Federal Reserve Banks data is updated yearly, averaging 0.900 USD bn from Dec 1947 (Median) to 2021, with 75 observations. The data reached an all-time high of 8.100 USD bn in 2000 and a record low of 0.000 USD bn in 1953. United States PF: HC: FI: Federal Reserve Banks data remains active status in CEIC and is reported by Bureau of Economic Analysis. The data is categorized under Global Database’s United States – Table US.A236: NIPA 2018: Net Stock of Private Fixed Assets: by Industry: Historical Cost.

United States - Wage and salary accruals: Domestic private industries: Federal Reserve banks, credit intermediation, and related activities was 299036.00000 Mil. of $ in January of 2023, according to the United States Federal Reserve. Historically, United States - Wage and salary accruals: Domestic private industries: Federal Reserve banks, credit intermediation, and related activities reached a record high of 303188.00000 in January of 2021 and a record low of 103858.00000 in January of 1998. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Wage and salary accruals: Domestic private industries: Federal Reserve banks, credit intermediation, and related activities - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Private Depository Institutions; Federal Funds and Security Repurchase Agreements Issued by the Rest of the World; Asset (FWTW), Transactions (BOGZ1FU702050063Q) from Q4 1946 to Q3 2021 about funds, repurchase agreements, issues, transactions, World, securities, federal, assets, private, depository institutions, and USA.

United States - Federal Government; Total Liabilities Due to Private Domestic Sectors, Transactions was 1951999.00000 Mil. of $ in October of 2024, according to the United States Federal Reserve. Historically, United States - Federal Government; Total Liabilities Due to Private Domestic Sectors, Transactions reached a record high of 11629028.00000 in April of 2020 and a record low of -703031.00000 in July of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Federal Government; Total Liabilities Due to Private Domestic Sectors, Transactions - last updated from the United States Federal Reserve on May of 2025.

The inflation rate in the United States declined significantly between June 2022 and May 2025, despite rising inflationary pressures towards the end of 2024. The peak inflation rate was recorded in June 2022, at *** percent. In August 2023, the Federal Reserve's interest rate hit its highest level during the observed period, at **** percent, and remained unchanged until September 2024, when the Federal Reserve implemented its first rate cut since September 2021. By January 2025, the rate dropped to **** percent, signalling a shift in monetary policy. What is the Federal Reserve interest rate? The Federal Reserve interest rate, or the federal funds rate, is the rate at which banks and credit unions lend to and borrow from each other. It is one of the Federal Reserve's key tools for maintaining strong employment rates, stable prices, and reasonable interest rates. The rate is determined by the Federal Reserve and adjusted eight times a year, though it can be changed through emergency meetings during times of crisis. The Fed doesn't directly control the interest rate but sets a target rate. It then uses open market operations to influence rates toward this target. Ways of measuring inflation Inflation is typically measured using several methods, with the most common being the Consumer Price Index (CPI). The CPI tracks the price of a fixed basket of goods and services over time, providing a measure of the price changes consumers face. At the end of 2023, the CPI in the United States was ****** percent, up from ****** a year earlier. A more business-focused measure is the producer price index (PPI), which represents the costs of firms.

Average hourly earnings of all employees in Connecticut from the Federal Reserve Bank of St. Louis.

Sectors include:

Manufacturing (SMU09000003000000003SA) Construction (SMU09000002000000003SA) Other Services in Connecticut (SMU09000008000000003SA) Trade, Transportation, and Utilities (SMU09000004000000003SA) Education and Health Services (SMU09000006500000003SA) Professional and Business Services (SMU09000006000000003SA) Financial Activities (SMU09000005500000003SA) Private Service Providing (SMU09000000800000003SA) Goods Producing in Connecticut (SMU09000000600000003SA) Leisure and Hospitality in Connecticut (SMU09000007000000003SA) Total Private (SMU09000000500000003SA)

Citation: U.S. Bureau of Labor Statistics and Federal Reserve Bank of St. Louis, Average Hourly Earnings of All Employees, retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/, January 6, 2021.

IOER (https://fred.stlouisfed.org/series/IOER)) and the interest rate on required reserves (IORR (https://fred.stlouisfed.org/series/IORR)) were replaced with a single rate, the interest rate on reserve balances (IORB (https://fred.stlouisfed.org/series/IORB)). See the source's announcement (https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210602a.htm) for more details.

The interest rate on reserve balances (IORB rate) is the rate of interest that the Federal Reserve pays on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks. The interest rate is set by the Board of Governors, and it is an important tool of monetary policy.

See Policy Tools (https://www.federalreserve.gov/monetarypolicy/reqresbalances.htm) and the IORB FAQs (https://www.federalreserve.gov/monetarypolicy/iorb-faqs.htm) for more information.

For questions on FRED functionality, please contact us here (https://fred.stlouisfed.org/contactus/).

United States FOMC Projection: Federal Funds Rate: Range: Y3: Lower End data was reported at 1.900 % in Dec 2021. This records an increase from the previous number of 0.600 % for Sep 2021. United States FOMC Projection: Federal Funds Rate: Range: Y3: Lower End data is updated quarterly, averaging 0.600 % from Sep 2019 to Dec 2021, with 5 observations. The data reached an all-time high of 1.900 % in Dec 2021 and a record low of 0.100 % in Dec 2020. United States FOMC Projection: Federal Funds Rate: Range: Y3: Lower End data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s United States – Table US.M003: Federal Funds Rates: Projection: Federal Reserve Board.

Financial Stress Index (STLFSI2) data was reported at -0.851 % in 07 Jan 2022. This records an increase from the previous number of -0.920 % for 31 Dec 2021. Financial Stress Index (STLFSI2) data is updated weekly, averaging -0.213 % from Dec 1993 (Median) to 07 Jan 2022, with 1463 observations. The data reached an all-time high of 9.193 % in 10 Oct 2008 and a record low of -1.131 % in 22 Oct 2021. Financial Stress Index (STLFSI2) data remains active status in CEIC and is reported by Federal Reserve Bank of St. Louis. The data is categorized under Global Database’s United States – Table US.S018: Financial Stress Index.