The US Federal Reserve Board published a FEDS Notes research article that traces how the Federal Reserve’s balance sheet has changed in size and composition from 1914 through end-2025, putting the post-2008 expansion and the recent adjustment toward an “ample” reserves framework into longer-run context. The note centres on a chart showing major asset and liability components as a share of GDP at each year-end, drawing on a historical weekly balance sheet dataset and subsequent H.4.1 releases. It highlights key inflection points including the waning role of gold after the end of Bretton Woods, the shift to publicly announced federal funds rate targeting under a “scarce reserves” regime in the early 1990s, and the breakdown of that regime in 2008 when lending and central bank liquidity swaps expanded beyond available Treasury holdings. Quantitatively, the balance sheet is shown peaking at about 22 percent of GDP during the Great Depression and World War II, reaching just over 25 percent of GDP in 2014 after crisis-era asset purchases, declining to a bit under 20 percent of GDP by 2019, and standing at about 22 percent of GDP at end-2025 following pandemic-era actions and subsequent balance sheet shrinkage.
Federal Reserve Board 2026-02-13
US Federal Reserve Board publishes illustrated history of the Federal Reserve balance sheet through 2025
The US Federal Reserve Board released a FEDS Notes article detailing changes in the Federal Reserve's balance sheet from 1914 to 2025, emphasizing the post-2008 expansion and recent adjustments toward an "ample" reserves framework. It highlights key historical shifts, including the decline of gold's role post-Bretton Woods and the transition to federal funds rate targeting in the 1990s. The balance sheet peaked at 22% of GDP during the Great Depression and WWII, exceeded 25% in 2014, and was approximately 22% at the end of 2025.