The Federal Reserve’s expenses exceeded its earnings in 2023 by $114.3 billion, its largest operating loss ever, forcing the US central bank to forgo remittances to the Treasury as interest rates remain elevated.
After covering its day-to-day operating expenses, the central bank is required to send the money it earns on its securities portfolio to the Treasury, where the revenue helps offset federal deficits.
so what does this potentially mean? i need a translation
I think this is the key bit:
Basically, debt payments end up reducing overall operating budget. So, the bigger the payments the less money there’s left for doing anything.