What is the fed balance sheet? What does it mean to expand it? And how does that affect us?

SUMMARY:

Why are we hearing about the federal reserve expanding its balance sheet?

How is the FEDs balance sheet different from the average businesses? What typical constraints are they not limited by?

The way money is created in the economy isn’t magic, although there is good reason that it appears to be.

Every investor watches what the FED does, and aims to derive some cause and effect from it.

The actions of the FED don’t happen for no reason, they take deliberate moves that they believe will have the greatest impact on the economy, consumer prices, and jobs.

But realistically, the actions of the FED also affect every other part of market (stocks, commodities, gold, and crypto) and that’s why investors follow their every move.

In today’s video I show you what it means for the FED to be expanding its balance sheet, when is full-blown quantitive easing, and when is it not.

Check it out and let me know what you think in the comments?

HERE’S WHAT I COVER:

  1. How does the average business balance sheet compare with the Federal Reserves’ balance sheet?

  2. How does consumer and investor spending differ from Federal Reserve spending?

  3. How are US Treasury assets are a lot like consumer credit cards?

  4. The 3 primary types of US Treasury assets, what they are and how they differ from each other.

  5. Why the Federal Reserve is buying US Treasury assets, and why we can’t ignore it!

  6. Why people are confusing the FED expanding its balance sheet for quantitative easing.

  7. How to see the details of this central bank maneuver and judge for yourself on what this move really means.

To Your Expanded Understanding!

Kiara Bickers