Postal Service Investment and Interest Rate Risk

The U.S. Postal Service holds its cash in the Postal Service Fund with the Federal Reserve Bank of New York and, traditionally, has invested its excess cash in highly liquid, overnight investments (Overnight Treasuries) issued by the U.S. Department of Treasury (Treasury), where interest rate changes are more pronounced than in longer-term investments. Postal Service cash has grown from $2.3 billion in fiscal year (FY) 2013 to $19.6 billion at year-end FY 2022.