

(GallatinRiverCapital) At the end of February 2012, the Federal Reserve (Fed) held $1.66 Trillion of U.S. Treasury Securities (1). At the
end of the same period, the top three foreign holders of U.S. Treasuries were China, Japan, and Brazil with holdings of $1.2 Trillion, $1.1 Trillion and $225 Billion, respectively (2). This makes
the Fed the largest holder of U.S. Treasury Securities. How did the Fed become the largest holder?
In late 2008, after the financial crisis took center ...