# FED Balance Sheet will hold more than $4.5 trillion by mid-January which is the highest level ever

The FED balance sheet will be bigger than it ever has before.

Yes, even before the height of the financial bailouts and QE.

After the REPO market injections are done this month, the FED balance sheet is expected to go over $4.5 trillion for the first time in a while, and reach the highest levels ever.

This is what the balance sheet has looked like since 2008:

https://i.postimg.cc/hG5ZFmYS/a44f99f0-1ba7-11ea-a2fe-ec6ee9f4808c.png

(Source: https://finance.yahoo.com/news/federal-reserve-hopes-to-steer-clear-of-repo-market-flare-up-121019679.html)

It's mostly been straight up since QE and the financial crisis starting in 2008.

Though, there was a brief unwind of some of those purchases in 2018.

# What intervening in the REPO markets looks like

Now that the FED has announced they will be flooding the REPO markets with liquidity, the balance sheet is suddenly on the rise again.

The reason for this is to keep rates within the target interest rate range, more of which can be seen here:

https://finance.yahoo.com/news/federal-reserve-hopes-to-steer-clear-of-repo-market-flare-up-121019679.html

Either way, the activity will boost the FED's balance sheet for the first time in over a year.

In fact, as mentioned above, it will boost the total assets held on the balance sheet to the highest levels ever:

https://i.postimg.cc/QM3KV8ss/fed-balance-sheet-projected.jpg

(Source: https://www.zerohedge.com/markets/avoid-repo-crisis-fed-will-flood-market-gargantuan-365-billion-year-end-liquidity)

Though, be sure to not call this QE, it's technically not, even though the balance sheet is still expanding.

If it quacks like a duck, walks like a duck, looks like a duck, it's not QE.

This is why hard money and Bitcoin matter.

Stay informed my friends.

-Doc