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The Fed Is Buying $41 Billion of Assets Daily and It’s Not Alone

  • Fed leads charge as new players take up large-scale purchases
  • Focus will eventually shift from liquidity to borrowing costs
U.S. Delays China Tariffs On Some Holiday-Shopping Favorites
Photographer: Andrew Harrer/Bloomberg

Central-bank balance sheets are expanding to record levels amid their latest buying spree, raising questions about how big they can get and whether those assets can ever be sold back to markets.

Policy makers didn’t have much luck paring down much smaller portfolios in the decade since the financial crisis. And now they have to bankroll a coronavirus economy that’s putting government budgets under unprecedented strain and threatening to drive companies everywhere out of business.