The balance sheet of the Federal Reserve hit a record $ 6.98 trillion in the week ended May 13, up from $ 6.72 trillion the previous week, according to official data on Thursday.
Much of the expansion was fueled by increased assets obligations $ 178 billion, according to MarketWatch. The Central Bank’s holdings of US treasury bills also increased by $ 37 billion.
The balance sheet has increased by more than $ 2.8 trillion since the end of February, thanks to the unprecedented monetary rescue lines launched by the fed to contain the economic fallout from the coronavirus pandemic.
Record expansion of the balance sheet bodes well for gold, a strong currency with a limited supply and a rate of deceleration in the expansion of the supply.
The yellow metal is currently trading at $ 1,732 an ounce, which represents a gain of 14% since the beginning of the year. Prices peaked at 7.5 years at $ 1,747 on April 14.