{"id":3844,"date":"2021-03-05T02:22:11","date_gmt":"2021-03-05T02:22:11","guid":{"rendered":"https:\/\/www.asadkarim.co.uk\/?p=3844"},"modified":"2021-02-25T08:23:30","modified_gmt":"2021-02-25T08:23:30","slug":"us-federal-reserve-response-to-covid-19","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=3844","title":{"rendered":"US Federal Reserve Response to Covid-19"},"content":{"rendered":"\n<p> US Central bank undertook a huge\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/l.workplace.com\/l.php?u=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FQuantitative_easing&amp;h=AT0sKm7KDxTc03NnGqNc4JHfFSKpvAZ3A0PcOtaWp7Rxsyv6O7I3hjSNNVMJso4G8lwCZ0GLIZ1iVHmYqiVlH5PcLowx6_WZtgE5Y-Hw-m4yIlJjf-TB4gj1rnE9UaIpmC8fbbulyt3qr7k2&amp;__tn__=-UK-R&amp;c[0]=AT1Y7fnMMl-Jc9o9eVU6LVGBg85LxyfN6JUZHCyooabzHY3pxL1CG0DjgM1tdVcvllA9ukf4uP-LSzHnFPcH-0aInS4URO1bU7NxLrvK69as7ioLe9d7bGTV0b61450LXuvYatXoh4QXkTKBwMpuEiIDWcEqfmgY0QQ\" target=\"_blank\">quantitative easing<\/a>\u00a0programme of expanding the money supply in the US Economy. So nearly 12months on since the Covid-19 pandemic hit the world, I thought I would look at how much the\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/bst_recenttrends.htm\" target=\"_blank\">US Federal Reserve has grown its balance sheet<\/a>\u00a0in the pandemic. So the numbers are vast, in March 2020 the assets on the balance sheet was $4,241,507 Million (<strong>$4.2 Trillion<\/strong>) and has now grown to $7,557,402 Million (<strong>$7.5 Trillion<\/strong>) worth of assets, that is an increase of $3,315,895 Million (<strong>$3.3 Trillion<\/strong>) assets, just huge asset purchase programme by the Fed, buying assets off the US commercial banks. As you can see from the pictures below, that mass expansion of the balance sheet is much larger than the\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/l.workplace.com\/l.php?u=https%3A%2F%2Fwww.federalreserve.gov%2F&amp;h=AT37yQfsOkMw6MC2NeNdeAGT8H-KS6QJZrUg28yKEqtBwiA4aVV_SasZJGqVx-RvjD-W5qiWqMoiT2iOXmHR7tvksP9X4KM5OKAITfnf7Ing_mxO2LTnHsHh578TH_chn4KYn4JyFIAP42gW&amp;__tn__=-UK-R&amp;c[0]=AT1Y7fnMMl-Jc9o9eVU6LVGBg85LxyfN6JUZHCyooabzHY3pxL1CG0DjgM1tdVcvllA9ukf4uP-LSzHnFPcH-0aInS4URO1bU7NxLrvK69as7ioLe9d7bGTV0b61450LXuvYatXoh4QXkTKBwMpuEiIDWcEqfmgY0QQ\" target=\"_blank\">US Federal Reserve&#8217;s<\/a>\u00a0response to the Global Financial Crisis of 2008. The damage done by the pandemic is clearly more worse than the insolvency and collapse of Lehman Brothers.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"708\" height=\"491\" src=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FebBalanceSheet2020.png\" alt=\"\" class=\"wp-image-3845\" srcset=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FebBalanceSheet2020.png 708w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FebBalanceSheet2020-300x208.png 300w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FebBalanceSheet2020-624x433.png 624w\" sizes=\"auto, (max-width: 708px) 100vw, 708px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"728\" height=\"497\" src=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FedBalanceSheet2021.png\" alt=\"\" class=\"wp-image-3846\" srcset=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FedBalanceSheet2021.png 728w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FedBalanceSheet2021-300x205.png 300w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2021\/02\/FedBalanceSheet2021-624x426.png 624w\" sizes=\"auto, (max-width: 728px) 100vw, 728px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>US Central bank undertook a huge\u00a0quantitative easing\u00a0programme of expanding the money supply in the US Economy. So nearly 12months on since the Covid-19 pandemic hit the world, I thought I would look at how much the\u00a0US Federal Reserve has grown its balance sheet\u00a0in the pandemic. So the numbers are vast, in March 2020 the assets [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3844","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/3844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3844"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/3844\/revisions"}],"predecessor-version":[{"id":3847,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/3844\/revisions\/3847"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}