The Federal Reserve’s balance sheet exceeds $8 trillion for the primary time, following extensive measures the United States central bank took last year to contain the economic damage from the ongoing Covid-19 outbreak.
The Fed’s record has nearly doubled since March last year, when the pandemic erupted within the United States, supported weekly statistics published earlier on Thursday by the U.S. central bank.
Within an official announcement, the central bank revealed last week that it might start selling the company bonds and exchange-traded bonds it purchased within the pandemic via an emergency-lending vehicle.
But the Fed’s monetary policy committee has pledged to keep purchasing the United States Treasury bonds and mortgage bonds at a pace of around $120 Bln a month “until substantial further progress has been made toward the committee’s maximum employment and price stability goals.”
Cryptocurrency investors are monitoring if and when the Fed will start tapering its easy money policy.
A popular narrative within the crypto market is to look at bitcoin as a hedge against inflation, especially within the face of the trillions of dollars of monetary stimulus pumped into financial markets over the past year.
Prior to the financial crisis of 2008, the central bank balance sheet stood below $1 trillion.