During the COVID crisis, the Fed reached nearly 2 trillion dollars in Treasury holdings on its balance sheet while the Treasury was building up deposits at the Fed rather than immediately spending money, effectively providing outright monetary financing until Congress was ready and tax dates had been postponed.
factualpending
Speaker
Peter StellaEvidence Quote
“Fed balance sheet reached 2 trillion while Treasury held deposits, providing outright monetary finance”
Source
Debt Death Spirals, Fed's Losses, & Fiscal Theory Of Price Level | Peter Stella & Joseph Wang— Forward GuidanceCreated: 8/10/2026, 10:58:24 PM
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