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The Fed's Balance Sheet: What It Actually Is

Macro and the Federal Reserve • Beginner Investing • 7 min

Like any bank, the Federal Reserve has a balance sheet. It shows what it owns (assets) and what it owes (liabilities). Tracking its size over time is one of the best ways to see quantitative easing and tightening in action, not just as concepts. On the asset side, the Fed mainly holds U.S. Treasury securities and mortgage-backed securities. These were accumulated through various bond-purchase programs over the…

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