Economics
QE May Be Over, But the Fed’s U.S. Debt Hoard Is About to Soar
- Balance sheet seen soaring past crisis-era levels in a decade
- ‘It will feel like QE’ for anyone who’s been in debt markets
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If you thought the Federal Reserve was done with quantitative easing, you might only be half right.
As soon as next year, analysts say the Fed will resume large-scale buying of debt securities -- this time just U.S. Treasuries -- in amounts that may ultimately exceed its crisis-era purchases. According to an estimate by Wells Fargo & Co., the central bank’s balance sheet will rise past its historic peak as it adds over $2 trillion to its Treasury debt holdings in the next decade.