<p>If you read Fed's balance sheet, you'll see a corresponding increase in its liabilities under various deposits. They simply credit the accounts of institutions who sold them the assets.</p>

CC BY-SA 3.0
2017-08-10T06:13:42.647Z
2017-08-10T06:13:42.647Z
historynerd
<p>As far as I'm aware, the Federal Reserve has 4.5$ Billion on its balance sheet.</p>

<p>Where did it get the money for buying all those assets?</p>

<p>I understand that it makes money out of interest on the bonds it holds, but where did it get the money to buy those bonds in the first place?</p>

CC BY-SA 3.0
2017-08-10T06:29:56.073Z
See also https://economics.stackexchange.com/questions/14614/how-do-central-banks-regulate-the-money-supply-to-avoid-inflation?rq=1
luchonacho
<central-banking><federal-reserve>
How does the Fed get money
bsky
# How does the Fed get money

(Asked by: username_0 on 2017-08-10)

As far as I'm aware, the Federal Reserve has 4.5$ Billion on its balance sheet.

Where did it get the money for buying all those assets?

I understand that it makes money out of interest on the bonds it holds, but where did it get the money to buy those bonds in the first place?

**Tags:** central-banking, federal-reserve

> **Comments:**
> **username_1**: See also https://economics.stackexchange.com/questions/14614/how-do-central-banks-regulate-the-money-supply-to-avoid-inflation?rq=1  

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## 1 answers

### Answer by username_2 on 2017-08-10. Score: 0

If you read Fed's balance sheet, you'll see a corresponding increase in its liabilities under various deposits. They simply credit the accounts of institutions who sold them the assets.


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