the Balance sheet of the Federal reserve this week for the first time exceeded $ 5 trillion as the Central Bank takes unprecedented steps to support the economy amid the pandemic of coronavirus.
the fed’s Balance sheet increased to a record $ 5.3 trillion for the week ended March 25, compared with $ 4.7 trillion dollars for the previous week.
it is Expected that the fed’s balance sheet will continue to expand. The us Central Bank pledged to buy unlimited amounts of Treasury bonds and mortgage-backed securities to support financial market in pandemic conditions.
last week the fed bought U.S. Treasury notes and bonds mortgage-backed to 355 billion dollars. He also invited other Central banks over 200 billion dollars of loans through the so-called currency swap lines so that they could provide dollar liquidity in their jurisdictions.
the Data on Thursday also showed strong demand for two new instruments of liquidity. The line of credit to primary dealers and a program to support mutual money market funds added to the fed’s portfolio of 58.4 billion.
in addition, the fed continued to lend directly to banks through the discount window. As of Wednesday, these loans rose to 50.8 billion from 28.2 billion in the previous week.