Fed's balance sheet swells to record US$6.13tril


In the four weeks since the Fed slashed interest rates to zero, restarted bond purchases and rolled out an unprecedented range of programs to limit the economic damage from the outbreak, the central bank's balance sheet has jumped by about $1.7 trillion. Bond holdings surpassed $5 trillion for the first time.

WASHINGTON: The Federal Reserve's balance sheet increased to a record US$6.13 trillion this week as the central bank used its nearly unlimited buying power to soak up assets and keep markets functioning smoothly, even as efforts to contain the coronavirus pandemic cut deeply into employment and economic output.

In the four weeks since the Fed slashed interest rates to zero, restarted bond purchases and rolled out an unprecedented range of programs to limit the economic damage from the outbreak, the central bank's balance sheet has jumped by about $1.7 trillion. Bond holdings surpassed $5 trillion for the first time.

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