FEDs Balance Sheet May 2014

The above is the FED's Balance Sheet as of today. Despite assertions of no further expansion if not only continues to grow but at an ever increasing rate.

The following chart depicts the key drivers.

Frankly the MBS explosion is an issue. Also Treasury debt still grows at a constant rate albeit slower than during the crash.

It will ne necessary to watch this continued explosion. It is well over $5 trillion when before the Crash it was only $800 billion. We will see an ten fold increase by 2016.