QE May Be Over, But the Fed’s U.S. Debt Hoard Is About to Soar
Bloomberg | Tue, May 21, 2019
by Liz McCormick and Alex Harris
If you thought the Federal Reserve was done with quantitative easing, you might only be half right.
As soon as next year, analysts say the Fed will resume large-scale buying of debt securities -- this time just U.S. Treasuries -- in amounts that may ultimately exceed its crisis-era purchases. According to an estimate by Wells Fargo & Co., the central bank’s balance sheet will rise past its historic peak as it adds over $2 trillion to its Treasury debt holdings in the next decade.