A look at the Fed’s balance sheet and equities
By Nick Kalivas - Fri 22 Feb 2013 09:12:46 CT
Related Keywords: Equity Index
The Fed's balance sheet continues to grow.  Over the last four weeks, the Fed has increased its balance sheet by $87.8 bln.  The year over year growth rate stands at 5.0% up from -0.15% at the start of the year.  The graphic displays the relationship between the Fed's balance sheet size and the S&P 500. Periods where the Fed started to expand its balance sheet in the post crisis periods are highlighted by arrows.   The strength of the relationship is not always clear, although very recently stocks have rallied with the expansion.  The recent sell off in stocks has tended to loosen the relationship.


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