Federal Reserve Balance Sheet Expands $200 Billion Since Mid-December
Fed balance-sheet data reveal continued monetary expansion that diverges from stated restraint and coincides with near-zero net national saving. Capital demand from deficits and infrastructure exceeds domestic supply, pushing real rates higher. Primary records indicate the divergence will persist until quarterly data force an explicit adjustment.
Primary documents record no announced pivot to easing, yet the data show continued accommodation. The next policy inflection will be visible first in weekly balance-sheet figures and quarterly flow-of-funds releases rather than in FOMC statements. Markets will test whether the Fed can sustain the expansion without re-accelerating measured inflation above target.
Federal Reserve: weekly balance sheet will remain above the December 2024 level through March 2026.
Sources (2)
- [1]Primary Source(https://www.federalreserve.gov/releases/h41/)
- [2]Supporting Source(https://www.federalreserve.gov/releases/z1/)