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 July 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.

View the total value of the assets of all Federal Reserve Banks as reported in the weekly balance sheet.

Central Bank Balance Sheet in the United States decreased to 6640843 USD Million in August 6 from 6642578 USD Million in the previous week. This dataset provides - United States Central Bank Balance Sheet - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for Assets: Securities Held Outright: U.S. Treasury Securities: All: Wednesday Level (TREAST) from 2002-12-18 to 2025-08-06 about maturity, Treasury, securities, and USA.

The U.S. federal funds effective rate underwent a dramatic reduction in early 2020 in response to the COVID-19 pandemic. The rate plummeted from 1.58 percent in February 2020 to 0.65 percent in March, and further decreased to 0.05 percent in April. This sharp reduction, accompanied by the Federal Reserve's quantitative easing program, was implemented to stabilize the economy during the global health crisis. After maintaining historically low rates for nearly two years, the Federal Reserve began a series of rate hikes in early 2022, with the rate moving from 0.33 percent in April 2022 to 5.33 percent in August 2023. The rate remained unchanged for over a year, before the Federal Reserve initiated its first rate cut in nearly three years in September 2024, bringing the rate to 5.13 percent. By December 2024, the rate was cut to 4.48 percent, signaling a shift in monetary policy in the second half of 2024. In January 2025, the Federal Reserve implemented another cut, setting the rate at 4.33 percent, which remained unchanged throughout the following months. What is the federal funds effective rate? The U.S. federal funds effective rate determines the interest rate paid by depository institutions, such as banks and credit unions, that lend reserve balances to other depository institutions overnight. Changing the effective rate in times of crisis is a common way to stimulate the economy, as it has a significant impact on the whole economy, such as economic growth, employment, and inflation. Central bank policy rates The adjustment of interest rates in response to the COVID-19 pandemic was a coordinated global effort. In early 2020, central banks worldwide implemented aggressive monetary easing policies to combat the economic crisis. The U.S. Federal Reserve's dramatic reduction of its federal funds rate - from 1.58 percent in February 2020 to 0.05 percent by April - mirrored similar actions taken by central banks globally. While these low rates remained in place throughout 2021, mounting inflationary pressures led to a synchronized tightening cycle beginning in 2022, with central banks pushing rates to multi-year highs. By mid-2024, as inflation moderated across major economies, central banks began implementing their first rate cuts in several years, with the U.S. Federal Reserve, Bank of England, and European Central Bank all easing monetary policy.

One of the major duties the Bank of England (BoE) is tasked with is keeping inflation rates low and stable. The usual tactic for keeping inflation rates down, and therefore the price of goods and services stable by the Bank of England is through lowering the Bank Rate. Such a measure was used in 2008 during the global recession when the BoE lowered the bank base rate from **** percent to *** percent. Due to the economic fears surrounding the COVID-19 virus, as of the 19th of March 2020, the bank base rate was set to its lowest ever standing. The issue with lowering interest rates is that there is an end limit as to how low they can go. Quantitative easing Quantitative easing is a measure that central banks can use to inject money into the economy to hopefully boost spending and investment. Quantitative easing is the creation of digital money in order to purchase government bonds. By purchasing large amounts of government bonds, the interest rates on those bonds lower. This in turn means that the interest rates offered on loans for the purchasing of mortgages or business loans also lowers, encouraging spending and stimulating the economy. Large enterprises jump at the opportunity After the initial stimulus of *** billion British pounds through quantitative easing in March 2020, the Bank of England announced in June that they would increase the amount by a further 100 billion British pounds. In March of 2020, the headline flow of borrowing by non-financial industries including construction, transport, real estate and the manufacturing sectors increased significantly.

Graph and download economic data for Bank of Japan: Total Assets for Japan (JPNASSETS) from Apr 1998 to Jul 2025 about Japan, assets, banks, and depository institutions.

This data package includes the underlying data and files to replicate the calculations, charts, and tables presented in A Portfolio Model of Quantitative Easing, PIIE Working Paper 16-7. If you use the data, please cite as: Christensen, Jens H. E., and Signe Krogstrup. (2016). A Portfolio Model of Quantitative Easing. PIIE Working Paper 16-7. Peterson Institute for International Economics.

The U.S. M1 money supply reached ***** trillion dollars in 2024, showing a modest increase from the previous year. While M1 grew gradually between 2000 and 2019, it experienced an unprecedented surge in 2020 due to the Federal Reserve's quantitative easing response to the COVID-19 pandemic. The most dramatic spike occurred in May 2020, when M1 jumped from *** to **** trillion dollars - more than tripling in a single month.

The benchmark interest rate in the United Kingdom was last recorded at 4 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

As of July 22, 2025, the yield for a ten-year U.S. government bond was 4.38 percent, while the yield for a two-year bond was 3.88 percent. This represents an inverted yield curve, whereby bonds of longer maturities provide a lower yield, reflecting investors' expectations for a decline in long-term interest rates. Hence, making long-term debt holders open to more risk under the uncertainty around the condition of financial markets in the future. That markets are uncertain can be seen by considering both the short-term fluctuations, and the long-term downward trend, of the yields of U.S. government bonds from 2006 to 2021, before the treasury yield curve increased again significantly in the following years. What are government bonds? Government bonds, otherwise called ‘sovereign’ or ‘treasury’ bonds, are financial instruments used by governments to raise money for government spending. Investors give the government a certain amount of money (the ‘face value’), to be repaid at a specified time in the future (the ‘maturity date’). In addition, the government makes regular periodic interest payments (called ‘coupon payments’). Once initially issued, government bonds are tradable on financial markets, meaning their value can fluctuate over time (even though the underlying face value and coupon payments remain the same). Investors are attracted to government bonds as, provided the country in question has a stable economy and political system, they are a very safe investment. Accordingly, in periods of economic turmoil, investors may be willing to accept a negative overall return in order to have a safe haven for their money. For example, once the market value is compared to the total received from remaining interest payments and the face value, investors have been willing to accept a negative return on two-year German government bonds between 2014 and 2021. Conversely, if the underlying economy and political structures are weak, investors demand a higher return to compensate for the higher risk they take on. Consequently, the return on bonds in emerging markets like Brazil are consistently higher than that of the United States (and other developed economies). Inverted yield curves When investors are worried about the financial future, it can lead to what is called an ‘inverted yield curve’. An inverted yield curve is where investors pay more for short term bonds than long term, indicating they do not have confidence in long-term financial conditions. Historically, the yield curve has historically inverted before each of the last five U.S. recessions. The last U.S. yield curve inversion occurred at several brief points in 2019 – a trend which continued until the Federal Reserve cut interest rates several times over that year. However, the ultimate trigger for the next recession was the unpredicted, exogenous shock of the global coronavirus (COVID-19) pandemic, showing how such informal indicators may be grounded just as much in coincidence as causation.

The value of M2 money supply in the U.S. amounted to ***** trillion U.S. dollars in 2023, which was a slight decrease compared to the previous year. While between 2000 and 2019, the M2 money supply increased at a relatively slow pace, there was an exceptionally sharp increase in 2020, which was the result of the Federal Reserve's quantitative easing in response to the COVID-19 pandemic.

The total assets of the Bank of England increased significantly between 2006 and 2024, despite a recent downward trend. There were particularly sharp increases in 2021 and 2022, which was due to the quantitative easing that was initiated as a response to the COVID-19 pandemic. In 2023, the total assets of the central bank decreased slightly to ******* billion British pounds but remained above ************ British pounds. In 2024, the total assets further decreased to ****** billion British pounds. In Europe, the largest central bank in terms of total assets is the Deutsche Bundesbank, which held over *** trillion euros at the end of 2023. The Bank of England ranked fourth.

The M2 money supply in the United Kingdom increased rapidly between 2000 and 2023, with a particularly sharp increase in 2020 as a result of the quantitative easing in response to the COVID-19 pandemic. The rising tendency continued between 2021 and 2022, and by December 2022, the M2 money supply in the UK exceeded ***** trillion British pounds. 2023 marked the first year in over a decade that the M2 money supply declined, but it remained above ***** trillion British pounds.

In June 2025, the yield on a 10-year U.S. Treasury note was **** percent, forecasted to decrease to reach **** percent by February 2026. Treasury securities are debt instruments used by the government to finance the national debt. Who owns treasury notes? Because the U.S. treasury notes are generally assumed to be a risk-free investment, they are often used by large financial institutions as collateral. Because of this, billions of dollars in treasury securities are traded daily. Other countries also hold U.S. treasury securities, as do U.S. households. Investors and institutions accept the relatively low interest rate because the U.S. Treasury guarantees the investment. Looking into the future Because these notes are so commonly traded, their interest rate also serves as a signal about the market’s expectations of future growth. When markets expect the economy to grow, forecasts for treasury notes will reflect that in a higher interest rate. In fact, one harbinger of recession is an inverted yield curve, when the return on 3-month treasury bills is higher than the ten-year rate. While this does not always lead to a recession, it certainly signals pessimism from financial markets.

The Eurozone's money supply has experienced significant growth over the past two decades, with the M2 measure reaching approximately 15.6 trillion euros by the end of 2024. This substantial increase from 4.6 trillion euros in 2001 reflects the expanding monetary base in the euro area. However, 2023 marked a notable deviation from this trend, as it was the first year in the observed period where the money supply in the euro area decreased. Components of money supply M2 is a broader measure of money supply that includes cash, checking deposits, and convertible near money. It encompasses the more narrow M1 measure, which consists of the most liquid components, such as currency in circulation and overnight deposits. As of December 2024, the Eurozone's M1 money supply stood at 10.57 trillion euros, while M2 reached 15.6 trillion euros. These figures are used by central banks to forecast inflation and interest rates, playing a crucial role in shaping monetary policy. Comparison with other regions While the Eurozone has seen steady growth in its money supply, other major economies have experienced their own unique trajectories. In the United States, for instance, the M2 money supply reached 20.86 trillion U.S. dollars in 2023, showing a slight decrease from the previous year. Both the Eurozone and the U.S. saw exceptional increases in their money supply during 2020, largely due to quantitative easing measures implemented in response to the COVID-19 pandemic. This global economic event had a profound impact on monetary policies across different regions, influencing the money supply dynamics worldwide.

The Eurozone's broad money supply, known as M3, reached a staggering 16.7 trillion euros by December 2024, marking a significant milestone in the region's monetary landscape. This figure represents the culmination of a steady upward trend observed over more than two decades, reflecting the expanding monetary base in the euro area. The growth in M3, which encompasses various forms of liquid assets, provides crucial insights into the overall economic health and monetary policy effectiveness within the Eurozone. Components and comparisons M3 is composed of several elements, including the narrower measures M1 and M2. As of December 2024, the Eurozone's M1 money supply, consisting of the most liquid assets, stood at 10.57 trillion euros. Meanwhile, M2 money supply, which includes M1 plus short-term deposits, reached approximately 15.6 trillion euros. These figures are instrumental for central banks in forecasting inflation and interest rates, guiding monetary policy decisions. Recent trends and global context While the Eurozone's money supply has generally trended upward, 2023 marked a notable deviation as the first year in the observed period where the money supply decreased. This shift mirrors similar trends in other major economies, such as the United States, where both M1 and M2 measures experienced slight decreases in 2023 compared to the previous year. These changes follow exceptional increases in 2020 across various regions, largely attributed to quantitative easing measures implemented in response to the COVID-19 pandemic.

In 2024, Japan had an average inflation rate estimated at 2.74 percent, marking the highest rate of inflation in Japan in almost a decade. However, this figure was still very low compared to most other major economies, such as Japan's fellow G7 members, four of which had inflation rates around six or seven percent in 2023 due to the global inflation crisis. Why is Japan's inflation rate lower? There are a number of contributing factors to Japan's relatively low inflation rate, even during economic crises. Japan eased its Covid restrictions more slowly than most other major economies, this prevented post-pandemic consumer spending that may have driven inflation through supply chain issues caused by higher demand. As the majority of Japan's food and energy comes from overseas, and has done so for decades, the government has mechanisms in place to prevent energy and wheat prices from rising too quickly. Because of this, Japan was able to shield its private sector from many of the negative knock on effects from Russia's invasion of Ukraine, which had a significant impact on both sectors globally. Persistent deflation and national debt An additional factor that has eased the impact of inflation on Japan's economy is the fact that it experienced deflation before the pandemic. Deflation has been a persistent problem in Japan since the asset price bubble burst in 1992, and has been symptomatic of Japan's staggering national debt thereafter. For almost 30 years, a combination of quantitative easing, low interest rates (below 0.5 percent since 1995, and at -0.1% since 2016), and a lack of spending due to low wages and an aging population have combined to give Japan the highest national debt in the world in absolute terms, and second-highest debt in relation to its GDP, after Venezuela. Despite this soaring debt, Japan remains the fourth-largest economy in the world, behind the U.S., China, and Germany.