Written by John O’Donnell, Online Trading Academy
The Chart of the Week
The Federal Reserve is licensed by the government to provide smooth operations for the nation’s banks, be a lender of last resort, and create fiat money as needed by the economy. One of the indicators of what the Fed is doing (or has done) is the balance sheet showing what assets the Fed has exchanged for new money.
Discussion of the Fed balance sheet continues after the Read more >> jump.
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The chart chart below is the focus for this week’s discussion. Note: The units for the vertical axis is Million of Dollars. Thus 3.946M indicates 3.946M Millions of Dollars, or $3.946 Trillion.
Source: YouTube
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