Fed Assets Reach Record $4 Trillion on Unprecedented Bond-Buying (Dec 2013)

federal-reserve

Source: Bloomberg – Fed Assets Reach Record $4 Trillion on Unprecedented Bond-Buying

Notable excerpts:

The Federal Reserve’s balance sheet reached a record $4 trillion, as the central bank pushed on with its unprecedented asset-purchase program.

Continue reading

Fed Seen Tapering QE in $10 Billion Steps in Next Seven Meetings (Dec 2013)

bernanke_01

Source: Bloomberg – Fed Seen Tapering QE in $10 Billion Steps in Next Seven Meetings

Notable excerpts:

The Federal Reserve is likely to reduce its bond purchases in $10 billion increments over the next seven meetings before ending the program in December 2014, economists said.

Continue reading

Federal Reserve Excess (Oct 2013)

bernanke_01

Source: WSJ – Federal Reserve Excess

Notable excerpts:

Federal Reserve Chairman Ben Bernanke is about to provide the republic with another watershed moment. Last week it was reported that total reserves held for banks on the Fed’s balance sheet reached more than $2.365 trillion. Of that total, only about $59 billion are required reserveswhat banks must hold at the Fed to meet regulatory guidelines. The rest, just over $2.3 trillion, are excess reserves.

Continue reading

Quote of the Week – Ben Bernanke

“Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”

– Ben Bernanke, 2002