Fast Take
Based on information from FRED, the Federal Reserve’s stability sheet has expanded considerably since 2002, rising from $720 billion to $7.2 trillion. This represents a Compound Annual Progress Charge (CAGR) of 11% over 22 years. Apparently, a current perception from CryptoSlate signifies that the S&P 500 has additionally skilled an analogous CAGR of 11%, suggesting that the S&P 500 grows on the similar charge because the Fed’s stability sheet growth. In the meantime, the SPX has risen roughly 16% year-to-date. In distinction, Bitcoin (BTC) has proven a outstanding CAGR of roughly 63% and has elevated by roughly 50% year-to-date (YTD).
Inspecting the proportion will increase throughout the Quantitative Easing (QE) occasions in 2008 and 2020 gives extra context. Throughout the 2008 monetary disaster, the Fed’s stability sheet elevated by 144%; throughout the COVID-19 pandemic in 2020, it grew by 137%. If an analogous disaster had been to happen and the Fed had been to reply with one other aggressive QE, the stability sheet may doubtlessly attain round $17 trillion.
The publish Potential for Fed stability sheet to hit $17 trillion in future crises examined appeared first on CryptoSlate.
