Who bought the $4.7 trillion of Treasury securities since last March?

Wolf Street/Wolf Richter

Repost from 5-24-2021

“The Fed bought on net $243 billion of Treasury securities in Q1 and $2.44 trillion since it began the bailouts of the financial markets in March 2020. Over this period through March 31, it has more than doubled its holdings of Treasuries to $4.94 trillion (blue line, left scale). It now holds a record of 17.6% of the Incredibly Spiking US National Debt.”

USAGOLD note:  In this report, Richter provides statistical confirmation of what you may have already suspected. The Fed purchased about one-half of the government debt issued over the past roughly one year. Richter’s numbers and correlations, available at the link, go through March 2021. The chart below shows the additions to the federal debt through the end of 2020.

bar chart showing additions to the federal debt through December 2020

Sources: St. Louis Federal Reserve [FRED], U.S. Department of Treasury, Fiscal Service

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