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Fed Balance Sheet Troubles

By experts and staff

Published
  • Benn SteilCFR Expert
    Senior Fellow and Director of International Economics
  • Dinah Walker
    Analyst, Geoeconomics

The U.S. Senate passed Paulson’s $700 billion rescue plan three days after the House rejected it. The House is expected to vote again on Friday. While the political maneuvering continues, the Federal Reserve is forced to hold things together through greater easing and expansion of its liquidity provisions, but as the graph above indicates, its balance sheet is severely stretched. The articles below discuss the limited options left for the Fed.

Irwin, Cho: Treasury, Fed Low on Rescue Options

Hilsenrath, Solomon, Reddy: Fed, Treasury Left with Familiar Arsenal

Andrews: A New Role for the Fed-Investor of Last Resort

Lanman, Torres: Fed Pumps $630 Billion into Financial System

Blackstone: U.S. Moves to Bolster Fed Balance Sheet