A $9 trillion binge turns central banks into the market’s biggest whales

Bloomberg/Malcolm Scott, Paul Jackson and JIn Wu/7-7-2021

“That binge has turned the U.S. Federal Reserve, the European Central Bank and the Bank of Japan into the ultimate market whales, swelling their combined assets to $24 trillion. Now, talk is shifting to winding down the banks’ massive monetary stimulus and the challenge that presents for the economies they support.”

USAGOLD note: We featured the very large role played by the Federal Reserve in the most recent edition of NEWS & VIEWS. This older article published last July provides a statistics-oriented summation of that role, not just for the Fed but the European Central Bank and Bank of Japan as well. For those who would like to gain a better understanding current central bank policy and the out-sized role they play in the economy and financial markets, this article is a good starting point. The ultimate question of course is what happens once the whales retreat. At least in the case of the United States, it looks like it will not be long until we find out.

Balance Sheet – Federal Reserve
bar chart showing balance sheet growth Federal Reserve

Balance Sheet – European Central Bank
bar chart showing balance sheet growth ECB

Balance Sheet – Bank of Japan
bar chart showing balance sheet growth Bank of Japan

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