DEFINITION of 'Fed Balance Sheet'

A breakdown of the assets and liabilities held by the Federal Reserve. This report essentially outlines the factors that affect both the supply and the absorption of Federal Reserve funds. The Fed balance sheet report reveals the means the Fed uses to inject cash into the economy and is formally known as the Factors Affecting Reserve Balances Report.

BREAKING DOWN 'Fed Balance Sheet'

The weekly balance sheet report became popular in the media during the financial crisis starting in 2007. The Fed balance sheet gave analysts an idea of the scope and scale of Fed market operations being used at the time. In particular, the Fed balance sheet allowed analysts to see details surrounding implementation of an expansionary monetary policy used during the 2007-2009 crisis.

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RELATED FAQS
  1. What are the main components of the Federal Reserve's balance sheet?

    Find out which items are listed as assets and liabilities on the balance sheet of the Federal Reserve, and how to read the ... Read Answer >>
  2. Does the balance sheet always balance?

    Yes, a balance sheet should always balance. The name "balance sheet" is based on the fact that assets will equal liabilities ... Read Answer >>
  3. What's the difference between a trial balance and a balance sheet?

    Discover what is included in a trial balance and a balance sheet, and learn about what sets these two accounting reports ... Read Answer >>
  4. What happens if the Federal Reserve lowers the reserve ratio?

    Learn about the Federal Reserve's monetary policy and the tools it uses to control it. Understand what happens if the Federal ... Read Answer >>
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