Fed’s $8.6 Trillion Balance Sheet a Focus as Banks Seek Cash

Fed’s $8.6 Trillion Balance Sheet a Focus as Banks Seek Cash

For all the focus on whether the Federal Reserve is about to pause its interest-rate hikes, there’s another critical policy decision sure to draw plenty of attention come Wednesday: What the central bank does with its massive pile of bond holdings.

The Fed's balance sheet of US$ 8.6 tri is targeted by investors with a banking crisis

BC American meeting on Wednesday will receive market attention not only because of interest rates but also because of the plan for liquidity in the markets

The Fed's US$ 8.6 trillion balance sheet comes into focus on demand from banks

The figure had been declining as part of the efforts of the US Central Bank to return to pre-pandemic levels, but has begun to expand again, now that the monetary authority acts to strengthen the banking system