During the global financial crisis, the Fed took extraordinary measures to stabilize the U.S. economy. Notably, it purchased long-term government securities to stimulate the economy, growing its balance sheet to over $4 trillion.
Now that the economy is stable, why is the Federal Reserve’s balance sheet still so big? Our new video summarizes research findings from a recent Economic Letter.
You may also be interested in:
The views expressed here do not necessarily reflect the views of the management of the Federal Reserve Bank of San Francisco or of the Board of Governors of the Federal Reserve System.