S&P 500 Returns and Fed Balance Sheet

S&P 500 Returns and Fed Balance Sheet This chart suggests the positive relationship between the Fed’s balance sheet expansion and S&P 500 returns. Image: Morgan Stanley Research

Fed’s Balance Sheet Composition

Fed’s Balance Sheet Composition Chart suggesting that the Fed should buy more Treasury bills and shift away from repo operations over time. Image: Deutsche Bank

Federal Reserve Balance Sheet: Assets and Liabilities

Federal Reserve Balance Sheet: Assets and Liabilities This chart shows the total assets and liabilities of the Federal Reserve. According to the NY Fed, the Fed’s balance sheet could be between $3.8 trillion and $4.7 trillion by 2025. Image: BofA Global Research

Fed Balance Sheet vs. S&P 500

Fed Balance Sheet vs. S&P 500 Chart suggesting that since October 2019, a 1% increase in the Fed balance sheet has been associated with a 0.9% increase in the S&P 500,  (R² = 0.52). Image: Deutsche Bank Global Research

Federal Reserve’s Balance Sheet and “Not QE”

Federal Reserve’s Balance Sheet and “Not QE” Welcome to “Not-QE”. The Fed’s balance sheet is expanding at fastest rate since the Great Financial Crisis. Image: US Global Investors