The Federal Reserve balance sheet has broken through the $US4 trillion mark.

The Fed has been expanding its balance sheet since the financial crisis in an effort to stimulate the economy. Its latest iteration has been a monthly $US85 billion a month asset purchasing program. But just yesterday, the Fed announced it will reduce (or “taper“) monthly purchases to $US75 billion a month.

That still means it will accumulate purchases on its balance sheet, albeit at a slower pace.

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