The Bankwatch

Tracking the consumer evolution of financial services

US Fed Balance sheet almost doubles in May 2020

Here is the US Federal Reserve Balance Sheet comparing pre and post 2008 Banking crisis on the left then the Covid-19 impact on the right.  These numbers are in Trillions of US dollars.

The big news is the $3 trillion growth in May 2020, and almost doubling (92.5% growth).  This is important because of the relative size of the US economy compared to other world economies.

As the Fed performs its market operations generally referred to as Quantitative Easing the Fed Balance Sheet is the result.  The US Government has bought or taken over debt from Banks, corporations, and government related institutions and taken on that liability into the name of US taxpayers.

Summary

  • pre 2008 Crisis: $1Tn
  • post 2008 crisis $2Tn
  • QE 2009 – 2020 $4Tn
  • immediately pre Covid-19 $4Tn
  • current May 2020 $7Tn

in summary the balance sheet is now $6 Tn higher than pre 2008 Banking crisis.

Fed BS 2020-05-10

Written by Colin Henderson

May 11, 2020 at 07:22

Posted in Uncategorized

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