Fed: Central Bank Balance-Sheet Trilemma
January 15, 2026
January 15, 2026
WASHINGTON, Jan. 15 -- The Federal Reserve issued the following Fed Notes article:
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Central Bank Balance-Sheet Trilemma
By Burcu Duygan-Bump and R. Jay Kahn
Introduction
Between December 2005 and December 2025, the Federal Reserve's balance sheet grew from about $800 billion to roughly $6.5 trillion--an increase from around 6 percent to 21 percent of GDP. This expansion primarily reflected two policy decisions by the FOMC . . .
* * *
Central Bank Balance-Sheet Trilemma
By Burcu Duygan-Bump and R. Jay Kahn
Introduction
Between December 2005 and December 2025, the Federal Reserve's balance sheet grew from about $800 billion to roughly $6.5 trillion--an increase from around 6 percent to 21 percent of GDP. This expansion primarily reflected two policy decisions by the FOMC . . .