返回列表 发帖

US govt securities on the Fed`s balance sheet

Why are the US Govt securities an asset on the Fed`s balance sheet...

The Fed is the banker to the US govt....

The Fed sells US govt securities through the FOMC operations to control the money supply in the US economy.....

Suppose it wants to increase money supply so it will issue Govt securirties and banks and insurance companies or any other institution would buy it....so that T-Bill/T-Note will be a liability on the Fed`s balance sheet as it has to repay the principal amount on the maturity date....

返回列表