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Saturday, June 18, 2011

The Fed's balance sheet reached a record $ 2.79 trillion

hexun exchange messages up to this weekend, the Fed's balance sheet rose to a record of disciplinary 2.792 trillion dollars, and on June 1, the figure was US $ 2.78 trillion. The fed as the United States of the Central Bank, after the second round of quantitative easing, purchase from the market in the United States Treasury bonds to free up liquidity. Fed tries to loose monetary policy to stimulate the United States economic development does not pay high deficit of the Government. According to the US Federal Reserve meeting minutes of April, after the end of the QE2 still to continue with the assets in the interest of the Federal Reserve to buy bonds.

but now fed officials have begun discussing how to reduce such large balance sheet, some fed officials said the Fed's balance sheet in the short term would be difficult to return to normal levels. In December 2007, only $ 87 billion on the balance sheet of the Federal Reserve, which means that the fed directly to the market in recent years in the market of us $ 2.7 trillion of base currency. In these huge assets, the Federal Reserve held by the United States national debt hit $ 1.532 trillion, holding mortgage bonds amounted to $ 917.9 billion, and bank deposits amounted to $ 1.589 trillion.