Federal Reserve Balance Sheet Explained

The Federal Reserve's balance sheet is nearing a 9 trillion dollars. Let me explain why.

The Federal Reserve may be exploring ways to eventually reduce its large-scale asset purchases, but its influence on financial markets and the economy will be felt for years to come.

The Fed’s hulking balance sheet, which topped $8 trillion this summer for the first time ever, also probably is a long way off from peaking.

That’s Brian Rehling, head of global fixed income strategy at the Wells Fargo Institute, pointing to the New York Fed’s own projections that the central bank’s balance sheet will peak at $9 trillion by the end of 2022 — and remain constant in size through 2025.

[nvoco]

Nice video. One thing that I would like to see added to any video about this topic, when the FED expands its balance sheet, where do they get the money? They certainly don't raise it in taxes, they're not selling US government bonds. They are creating it, in other words printing it.

[chewie]

Dec 1st 2021, the feds talked about tapering....then looking at the balance sheet Dec 29th, 2021 a bump up!!!!. Amazing