Fast Take
In response to information from FRED, the Federal Reserve’s stability sheet has expanded considerably since 2002, rising from $720 billion to $7.2 trillion. This represents a Compound Annual Development Charge (CAGR) of 11% over 22 years. Curiously, a latest perception from CryptoSlate signifies that the S&P 500 has additionally skilled an identical CAGR of 11%, suggesting that the S&P 500 grows on the similar fee because the Fed’s stability sheet growth. In the meantime, the SPX has risen roughly 16% year-to-date. In distinction, Bitcoin (BTC) has proven a exceptional CAGR of roughly 63% and has elevated by roughly 50% year-to-date (YTD).
Inspecting the share will increase in the course of the Quantitative Easing (QE) occasions in 2008 and 2020 gives further context. In the course of the 2008 monetary disaster, the Fed’s stability sheet elevated by 144%; in the course of the COVID-19 pandemic in 2020, it grew by 137%. If an identical disaster have been to happen and the Fed have been to reply with one other aggressive QE, the stability sheet may probably attain round $17 trillion.
The submit Potential for Fed stability sheet to hit $17 trillion in future crises examined appeared first on CryptoSlate.
