The Federal Reserve Now Owns 15 Percent of the U.S. Treasury Market; at Its Current Rate, it Could Own the Whole Market in Less Than Two Years

by Pam Martens and Russ Martens
Wall Street on Parade

“The More I See Of The Moneyed Classes, The More I Understand the Guillotine.” ~ George Bernard Shaw

According to the U.S. Treasury, as of February 29, 2020, there was $16.9 trillion in marketable U.S. Treasury securities outstanding. Of that amount, at the end of February, the Federal Reserve held $2.47 trillion or 14.6 percent – making it, by far, the largest single holder of U.S. Treasuries anywhere in the world.

By this past Friday, the Fed’s ownership of the Treasury market had increased to $3.12 trillion. It had grown by an unprecedented $650 billion in one month’s time. And on March 23, the Fed announced that it would buy unlimited amounts of both Treasury securities and agency mortgage-backed securities “to support smooth market functioning.”

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