NY Fed says outlook for Fed balance sheet is 'highly uncertain" due to coronavirus

NEW YORK, May 4 (Reuters) – The outlook for the Federal Reserve’s balance sheet is ‘highly uncertain” given the economic deterioration caused by the coronavirus pandemic, the New York Fed said in a report released Monday.

Prior to the pandemic, the New York Fed’s projections had the balance sheet rising to $6.3 trillion under a baseline scenario. However, the Fed’s balance sheet last month grew to $6.7 trillion as the central bank bought assets to stabilize financial markets and cushion the economy devastated by the pandemic. (Reporting by Jonnelle Marte and Ann Saphir Editing by Chizu Nomiyama)

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