Central Banking

The Fed's balance sheet and the US Treasury

The announcement on Wednesday that the United States Treasury is issuing debt - at the request of the Federal Reserve - to replenish the central bank's balance sheet, has raised questions about the health of the Fed's balance sheet. Here are some reactions to the move.

Many have questioned in recent months why the balance sheet of the Fed (in particular that of the New York Fed) has been used to try and create a firewall against further market disruptions. Would it not have been more appropria