Federal Reserve's balance sheet explodes to $5.81 trillion

The Federal Reserve is pulling out all the stops to keep the financial system afloat. In addition to interest rate cuts, the central bank came up with a Unlimited buyback program for government bonds and a new Buyback program for corporate loans. The Fed also further expanded its interventions in the repo market with new long-term operations. In addition, the central bank opened Dollar swaps with other central banks. This whole package of measures is causing an explosive increase in the Fed's balance sheet.

Over the past two weeks, the Fed's balance sheet has risen by nearly $1.2 trillion to $5.81 trillion. By way of comparison, that is the same as the increase in the balance sheet in 2008, with the difference that it took seven weeks to expand the balance sheet by this amount. This is also far from the end of the increase, as the Fed is expected to buy a lot more debt in the coming weeks. The central bank will also make more dollars available to other central banks through dollar swaps and New Repo Operations.

Federal Reserve's balance sheet explodes to $5.81 trillion

Federal Reserve Adds Billions to Balance Sheet

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