Market Observations

The Monetary Wheels Go Round & Round

Market Observations White Paper
March 2021

Authors & Contributors

One year into the pandemic’s crisis response, the Federal Reserve has boosted the assets on its balance sheet by $3.4 trillion, from $4.2 trillion to $7.6 trillion, the latter representing 35 percent of nominal GDP. Reserves held by depository institutions have nowhere near followed up, increasing “only” $1.9 trillion in the past year.