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The federal reserve has 7x the assets it had in 2009: https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetary
by coryrc 8mo ago
The federal reserve has 7x the assets it had in 2009: https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
- dash2 8mo agoHow much of that is shares as opposed to treasuries, MBS etc?
- panarky 8mo agoWhen the Fed purchases bonds, that reduces interest rates, and lower rates make asset prices go up. The Fed purchases the bonds with cash created out of thin air with a journal entry. That newly created cash is used by private actors to purchase assets, which makes asset prices go up. The Fed could purchase equities directly, but it doesn't have to own them to influence their prices.
- dash2 8mo agoBut that again applies to all assets, not just equities.
- CamelCaseName 8mo agoOkay, but this shows that they made massive acquisition in 2020 (presumably at the bottom of the market in response to COVID) and are now unwinding