Friday, August 4, 2017

Liberty Street — A Closer Look at the Fed’s Balance Sheet Accounting

An earlier post on how the Fed changes the size of its balance sheet prompted several questions from readers about the Federal Reserve’s accounting of asset purchases and the payment of principal by the Treasury on Treasury securities owned by the Fed. In this post, we provide a more detailed explanation of the accounting rules that govern these transactions.
Liberty Street Economics — FRBNY
A Closer Look at the Fed’s Balance Sheet Accounting
Deborah Leonard, Antoine Martin, and Jennifer Wolgemuth

1 comment:

Matt Franko said...

"Treasury General Account, is used to pay off the Treasury security; as a result, both the asset and the liability sides of the Fed’s balance sheet decrease. "

Might open up some current "debt ceiling" for Treasury ....