Fed’s Balance Sheet Rapidly Increasing

As you can see from both charts reflecting the Federal Reserves balance sheet, bank reserves, the monetary base and other monetary aggregates have experienced a massive increase since Sept.’08. The spike (chart 2) began at $996 million level and it reached $2.3 Trillion this week, more than double its total of $891,985 mln/YoY basis.

Many economists see this asset expansion as benign, meaning, the Fed’s balance sheet is getting assimilated by non-monetary liabilities, while others criticize the pretension arguing against it.