The Federal Reserve`s Asset Portfolio has reached Levels Never Seen Before

30 March 2020

Research

The Federal Reserve will slow the pace on which it buys treasuries under its unlimited quantitative easing program. The U.S. Central Bank, which has been aggressively purchasing treasuries for the past two weeks in a bid to offset the economic and market fallout from the coronavirus pandemic, on Friday Said that it would dial back the daily pace of buying to $ It will continue purchasing at the existing pace of $ 75 billion a day for the first three days of Next Week. (Bloomberg) Though the Federal Reserve’s Efforts to Keep Markets Running and Boost the Economy are just getting better gear, its asset portfolio has reached levels never seen before. The Central Bank`s Balance Sheet, which consists of largely of bonds and other assets it has been purchased over the years, ballooned to $ 5.3 trillion for the week ending wednesday. That`s well above the $ 4,52 trillion peak it hit in mid-may 2016 before the fed started rolling off the bonds it had acquired during and after the great recession. (CNBC) Source: Danareksa Securities Debt Research Photo by Ross Sokolovski On Unsplash