United States Federal Reserve Buys Nearly $1 TRILLION in U.S. Treasury Securities Over One Year Period

Over about a one year period from August, 2010 to September, 2011, the United States Federal Reserve System acquired nearly $1 TRILLION more in U.S. Treasury Securities, surpassing the holdings of China. Before the start of 2011, China was the largest holder of United States Treasury debt.

Question:  Where did the Federal Reserve get $1 TRILLION to buy United States debt?

Sources:

• Board of Governors of the Federal Reserve System: Federal Reserve System Monthly Report on Credit and Liquidity Programs and the Balance Sheet, “Table 1:  Assets, liabilities, and capital of the Federal Reserve System,” U.S. Treasury Securities.  From www.federalreserve.gov/monetarypolicy/files/monthlyclbsreport201006.pdf to www.federalreserve.gov/monetarypolicy/files/monthlyclbsreport201201.pdf
• United States Treasury Department: Major Foreign Holders of Treasury Securities

  www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
  www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfhhis01.txt