A Decomposition of Balance Sheet Reduction
Abstract
Since the Global Financial Crisis, central banks have used the size and composition of their balance sheets to influence financial conditions and economic activity when policy rates are constrained by the effective lower bound. A common measure of the size of the Federal Reserve's balance sheet is the System Open Market Account (SOMA) securities holdings expressed as a share of nominal gross domestic product (NGDP).
Fields of Study & Subjects
Monetary Policy and Economic Impact
Banking stability
regulation
efficiency
Global Financial Crisis and Policies
Publication details
- Journal / source
- FEDS Notes
- Issue
- 2026-02-02
- Publication date
- 1 February 2026
- Language
- EN