Chart No. 2: Gold (price) to Monetary Base Ratio This chart (source) shows the ratio of the gold price to the St. Louis Adjusted Monetary Base back to 1918. The monetary base roughly matches the size of the Federal Reserve balance sheet, which indicates the level of new money creation ...
Pedro Nicolaci da Costa
This inflation compensation of about $1.5 billion a week is income that the Fed earns that will be paid in cash by the Treasury Dept. when the TIPS mature. The Fed adds this income to the balance of the TIPS weekly. You can see it in the chart below in the slight upward slope in t...
“Participants observed that the continuing process of reducing the size of the Federal Reserve’s balance sheet was an important part of the Committee’s overall approach to achieving its macroeconomic objectives and that balance sheet runoff had so far proceeded ...
Since the funds rate will be highly sensitive to any system excess (or deficiency), the level of excess (or deficient) reserves needed for tactical interest rate operations will be very small relative to the size of the Fed's balance sheet. Such reserve adjustments are easily facilitated using...
size of the Fed’s balance sheet (whichnow stands at $7.8 trillion) which the U.S. taxpayer is ultimately on the hook for. It impacts the U.S. economy because it is worsening the bubble that already exists in the stock mark...
The size of the Fed’s balance sheet, as I said, has ballooned to an unheard-of $9 trillion, and if you include the assets of the central banks of the European Union (EU), China and Japan, you’re looking at a combined $31 trillion as of the end of 2021. ...
that those decisions depend on the totality of the incoming data rather than on any particular data point. Several participants stressed the need to monitor conditions in money markets and factors affecting the demand for reserves amid the ongoing reduction in the Federal Reserve’s b...
"...The focus of the Committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level. As previously announced, over...
It’s of particular interest this time around because if the Fed has shifted its thinking about when to lower interest rates, it will come through in this chart. Investors pay close attention to these forecasts for information about the path of rate hikes. When there’s a shift in the plo...