The Federal Reserve's balance sheet has undergone significant changes since 2007, reflecting its response to major economic crises. From a modest *** trillion U.S. dollars at the end of 2007, it ballooned to approximately **** trillion U.S. dollars by May 2025. This dramatic expansion, particularly during the 2008 financial crisis and the COVID-19 pandemic - both of which resulted in negative annual GDP growth in the U.S. - showcases the Fed's crucial role in stabilizing the economy through expansionary monetary policies. Impact on inflation and interest rates The Fed's expansionary measures, while aimed at stimulating economic growth, have had notable effects on inflation and interest rates. Following the quantitative easing in 2020, inflation in the United States reached * percent in 2022, the highest since 1991. However, by *************, inflation had declined to *** percent. Concurrently, the Federal Reserve implemented a series of interest rate hikes, with the rate peaking at **** percent in ***********, before the first rate cut since ************** occurred in **************. Financial implications for the Federal Reserve The expansion of the Fed's balance sheet and subsequent interest rate hikes have had significant financial implications. In 2023, the Fed reported a negative net income of ***** billion U.S. dollars, a stark contrast to the ***** billion U.S. dollars profit in 2022. This unprecedented shift was primarily due to rapidly rising interest rates, which caused the Fed's interest expenses to soar to over *** billion U.S. dollars in 2023. Despite this, the Fed's net interest income on securities acquired through open market operations reached a record high of ****** billion U.S. dollars in the same year.

Inflation is generally defined as the continued increase in the average prices of goods and services in a given region. Following the extremely high global inflation experienced in the 1980s and 1990s, global inflation has been relatively stable since the turn of the millennium, usually hovering between three and five percent per year. There was a sharp increase in 2008 due to the global financial crisis now known as the Great Recession, but inflation was fairly stable throughout the 2010s, before the current inflation crisis began in 2021. Recent years Despite the economic impact of the coronavirus pandemic, the global inflation rate fell to 3.26 percent in the pandemic's first year, before rising to 4.66 percent in 2021. This increase came as the impact of supply chain delays began to take more of an effect on consumer prices, before the Russia-Ukraine war exacerbated this further. A series of compounding issues such as rising energy and food prices, fiscal instability in the wake of the pandemic, and consumer insecurity have created a new global recession, and global inflation in 2024 is estimated to have reached 5.76 percent. This is the highest annual increase in inflation since 1996. Venezuela Venezuela is the country with the highest individual inflation rate in the world, forecast at around 200 percent in 2022. While this is figure is over 100 times larger than the global average in most years, it actually marks a decrease in Venezuela's inflation rate, which had peaked at over 65,000 percent in 2018. Between 2016 and 2021, Venezuela experienced hyperinflation due to the government's excessive spending and printing of money in an attempt to curve its already-high inflation rate, and the wave of migrants that left the country resulted in one of the largest refugee crises in recent years. In addition to its economic problems, political instability and foreign sanctions pose further long-term problems for Venezuela. While hyperinflation may be coming to an end, it remains to be seen how much of an impact this will have on the economy, how living standards will change, and how many refugees may return in the coming years.

Interactive chart of historical data showing the broad price-adjusted U.S. dollar index published by the Federal Reserve. The index is adjusted for the aggregated home inflation rates of all included currencies. The price adjustment is especially important with our Asian and South American trading partners due to their significant inflation episodes of the 80s and 90s.

The USD/EGP exchange rate fell to 50.0600 on June 24, 2025, down 1.22% from the previous session. Over the past month, the Egyptian Pound has weakened 0.34%, and is down by 3.58% over the last 12 months. Egyptian Pound - values, historical data, forecasts and news - updated on June of 2025.

Interactive historical chart showing the daily U.S. Dollar - Japanese Yen (USDJPY) exchange rate back to 1971.

The USD/GHS exchange rate fell to 10.1787 on June 24, 2025, down 1.18% from the previous session. Over the past month, the Ghanaian Cedi has strengthened 2.37%, and is up by 33.25% over the last 12 months. Ghanaian Cedi - values, historical data, forecasts and news - updated on June of 2025.

Long term historical dataset of the daily Euro - U.S. Dollar (EURUSD) exchange rate back to 1999.

Interactive historical chart showing the daily British Pound - U.S. Dollar (GBPUSD) exchange rate back to 1971.

The USD/UGX exchange rate fell to 3,620.1000 on June 6, 2025, down 0.26% from the previous session. Over the past month, the Ugandan Shilling has strengthened 1.06%, and is up by 4.47% over the last 12 months. Ugandan Shilling - values, historical data, forecasts and news - updated on June of 2025.

Purchasing Power Parity: National Currency per USD data was reported at 1.848 USD/PEN in 2026. This records an increase from the previous number of 1.836 USD/PEN for 2025. Purchasing Power Parity: National Currency per USD data is updated yearly, averaging 1.708 USD/PEN from Dec 2007 (Median) to 2026, with 20 observations. The data reached an all-time high of 1.848 USD/PEN in 2026 and a record low of 1.392 USD/PEN in 2008. Purchasing Power Parity: National Currency per USD data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Peru – Table PE.OECD.EO: Exchange Rate: Forecast: Non OECD Member: Annual. PPP - Purchasing power parity, national currency per USD

Interactive historical chart showing the daily U.S. Dollar - Chinese Yuan (USDCNY) exchange rate back to 1981.

The USD/TZS exchange rate fell to 2,660.0000 on June 24, 2025, down 1.30% from the previous session. Over the past month, the Tanzania Shilling has strengthened 1.31%, but it's down by 0.95% over the last 12 months. Tanzania Shilling - values, historical data, forecasts and news - updated on June of 2025.

Inflation in Zimbabwe rose to 10.61 percent in 2018, and is projected to jump dramatically to 736.11 percent in 2024. After that, estimates predict a slow decline for now - however, given Zimbabwe’s history of poor monetary policy, including one of the worst instances of hyperinflation, this seems unrealistic. Inflation history Inflation depends significantly on economic expectations of it, making it hard to reduce inflation once it has hit higher levels. This happened in Zimbabwe in the years approaching 2008, at the end of which a single U.S. dollar was worth over 2.6 trillion Zimbabwe dollars, up from 10,000 Zimbabwe dollars at the start of 2005. This all but destroyed Zimbabwe’s economy, leading to very low gross domestic product (GDP) per capita and a government struggling to finance itself. The way ahead In 2009, the Zimbabwean dollar had twelve zeros slashed from the banknotes. This was not enough, and after three decades of rule, former Zimbabwean president Robert Mugabe was removed from power at the end of 2017. Citizens of the country are trying to hold foreign banknotes; they prefer U.S. dollars or euros, but the South African rand is more common. However, the rand’s performance against other currencies has been lackluster in recent years. This underscores the struggle that the Zimbabwean people have to find a stable currency at the moment.