- U.S. Federal Reserve balance sheet surges past $7 trillion.
- The balance sheet has increased by a little less than $3 trillion since January 1st.
- Federal Reserve Chair says the Federal Reserve is “not out of ammunition by a long shot.”
The U.S. Federal Reserve balance sheet has now surpassed $7 trillion as the COVID-19 economic fallout continues.
The balance sheet has increased by a little under $3 trillion since the beginning of this year. The balance sheet began to rapidly climb as coronavirus brings the US economy to a grinding halt.
Furthermore, Messari’s Ryan Watkins noted that the Federal Reserve balance sheet is now almost a third of the United State’s GDP.
With the rapid surge in the Federal Reserve’s balance sheet, interest in limited inflation assets rises. This is evident by interest in gold’s surge amid COIVD-19. Furthermore, the rapid rise in the balance sheet may prove to be a boon for Bitcoin’s value proposition as a hedge against hyperinflation.
“not out of ammunition”
As the Federal Reserve balance sheet continues to rise, many are taking a closer look at the Federal Reserve’s next steps. Reported earlier by TheCryptoAssociate, Jerome Powell, Chair of the Federal Reserve, notes that the Federal Reserve has not reached its limit.
Well, there’s a lot more we can do. We’ve done what we can as we go. But I will say that we’re not out of ammunition by a long shot. No, there’s really no limit to what we can do with these lending programs that we have.Jerome Powell (Chair of the U.S Federal Reserve)
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