Federal Reserve balance sheet stabilizes, tops $7 trillion as stock market tanks

The Federal Reserve’s balance sheet has stabilized this past summer, which could explain why the stock market has tanked in September.

Although the U.S. central bank’s balance sheet is more than $7 trillion, the explosion in growth has leveled off.

Here is what its total assets look like:

Does this mean the Eccles Building’s stimulus has peaked? It is doubtful, considering how the economy is still falling short in the post-coronavirus recovery and the Fed has adopted a new inflation approach.

With the leading stock indexes plunging, the Fed will be forced to intervene and start injecting even more money throughout the equities arena.