ES Wednesday 8-20-14 : Hot Topic

Fed Balance Sheet

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Definition of 'Fed Balance Sheet'

The Board of Governors of the Federal Reserve System publishes the "Consolidated Statement of Condition of All Federal Reserve Banks" once a week on Thursdays. This shows the condition of each Federal Reserve bank and a consolidated statement for all Federal Reserve banks. The Board of Governors requires that excess earnings of the Reserve Banks be transferred to the Treasury as interest on Federal Reserve notes.

The term "expanding the Fed's balance sheet" refers to actions by the Fed to expand the money supply also known as "credit easing." To do this the Fed can provide loads against various types of collateral to enhance liquidity in markets.

Check the Economic Events Calendar to see if this or other announcements are taking place in the next 5 days.

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