What are the assets and liabilities of the Fed?

Fed liabilities include U.S. currency in circulation and the reserves deposited by commercial banks. During economic crises, the Fed can expand its balance sheet by buying more assets under LSAPs, a policy also known as quantitative easing (QE). Like any balance sheet, the Fed's shows its assets and liabilities.

Does the Federal Reserve have a balance sheet?

The Federal Reserve operates with a sizable balance sheet that includes a large number of distinct assets and liabilities. The Federal Reserve's balance sheet contains a great deal of information about the scale and scope of its operations.

How big is the Fed's balance sheet?

As with any balance sheet, the Fed's consists of assets on one side and equal liabilities on the other. Before the Great Recession, the Fed's assets were mostly Treasuries, and its liabilities consisted largely of currency in circulation. The size of its balance sheet was also much smaller than it is today, hovering around $800 billion.