The Federal Reserve’s asset portfolio has reached levels never seen before

The Federal Reserve will slow the pace at which it buys Treasuries under its unlimited quantitative easing program. The U.S. central bank, which has been aggressively purchasing Treasuries for the past two weeks in a bid to offset the economic and market fallout from the coronavirus pandemic, on Friday said that it would dial back the daily pace of buying to $60 billion next Thursday and Friday. It will continue purchasing at the existing pace of $75 billion a day for the first three days of next week. (Bloomberg)

Though the Federal Reserve’s efforts to keep markets running and boost the economy are just getting into gear, its asset portfolio has reached levels never seen before. The central bank’s balance sheet, which consists largely of bonds and other assets it has purchased over the years, ballooned to $5.3 trillion for the week ending Wednesday. That’s well above the $4.52 trillion peak it hit in mid-May 2016 before the Fed started rolling off the bonds it had acquired during and after the Great Recession. (CNBC)

Source: Danareksa Sekuritas Debt Research
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