by Bill McBride on 12/18/2008 08:07:00 PM
Thursday, December 18, 2008
Here is another look at the Fed's balance sheet (released today). As a reminder, Dallas Fed President Richard Fisher commented in early November that he expected the Fed assets to grow to $3 trillion by the end of this year.
"I would not be surprised to see them aggregate to $3 trillion—roughly 20 percent of GDP—by the time we ring in the New Year."
Click on graph for larger image in new window.
The Federal Reserve assets increased to $2.312 trillion this week.
Note: the graph shows Total Factors Supplying Federal Reserve Funds and is an available series that is close to assets.
Although the assets are still increasing, it looks like Fisher was overly pessimistic - $3 trillion by year end seems less likely now.
Posted by Bill McBride on 12/18/2008 08:07:00 PM