, Columnist
The Risks in Central-Bank Balance Sheets Are Clear
The Fed is virtually unique in regards to the safety of its holdings. Other banks, not so much.
Central banks are expanding.
Photographer: David Paul Morris/Getty ImagesThere has so been much attention paid to the Federal Reserve recently in terms of what policy makers are saying and doing that it’s time to correct some observations.
At its June policy meeting, the Fed announced it would begin shrinking its balance sheet by $10 billion a month. And it has, with assets dropping to $4.439 trillion from $4.476 trillion. But that’s de minimus when you consider that its assets have grown from less than $1 trillion back in 2008.