Magic Money

While the Fed balance sheet recently crossed $4 trillion, the amount that’s in Treasury securities is $2.23 trillion while the amount in mortgage backed securities is $1.53 trillion, for a total of $3.76 trillion, with the remaining $290 billion in odds and ends. The Fed balance sheet will grow by another $405 billion before tapering is finished. Remember, the balance sheet was just $800 billion before the Great Recession began.

Recent Posts

Categories