Home Fed’s balance sheet size to exceed $10 trillion by the end of 2021
FXStreet News

Fed’s balance sheet size to exceed $10 trillion by the end of 2021

The US Federal Reserve’s (Fed) balance sheet is likely to exceed $10 trillion by the end of 2021, according to analysts at Morgan Stanley. 

The central bank has expanded its balance sheet by over $3 trillion to $7.10 trillion in the past 3.5-month to help the economy and credit markets absorb the shock arising from the coronavirus outbreak. More importantly, the Fed is unlikely to shift away from the ultra-accommodative stance anytime soon. 

“In this cycle, the Fed’s balance sheet will expand more than it did during QE1, Q2, and Q3,” said Morgan Stanley.

Balance sheet expansion could bode well for gold and weigh over the US dollar. 


 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.