The Federal Reserve has taken unprecedented steps to stimulate the economic recovery from the Great Recession, but the tab has risen to such tremendous proportions — fast approaching $4 trillion — that some worry the central bank ultimately could require its own taxpayer rescue.
The Fed’s total assets on its balance sheet have more than quadrupled to $3.8 trillion since 2008 amid a massive bond-buying effort. And there are few signs that the growth will stop anytime soon.
That could put the finances of the world’s most powerful central bank at risk if historically low interest rates were to rise sharply — something top Fed officials said they do not expect but that critics warn is very possible .... http://www.startribune.com
