The FED response to Covid 19


The FED has engaged in numerous monetary policy programs in response to the Covid-19 Crisis that are intended to help keep the economy from entering a full depression and keep it functioning. This massive expansionary monetary policy response has had an impact on the FED’s balance sheet.

ACTIVITY: Look over the following article titled The Impact of the Fed’s Response to COVID-19 So Far and then answer the…

following questions:

  1. By how much have assets changed since Feb 2020 according to the article?
  2. What were the 3 key components of assets that led to the change? (give $ figures as well
  3. Since assets equal liabilities, liabilities have also changed. What were the 2 key components of liabilities that have changed? (give $ figure as well)
  4. What does the article say about the US public debt, especially about public vs. non-public holdings of the debt?

Provide your responses directly below.

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