Fed's balance sheet expands to record $6.62 trillion

The US Federal Reserve's balance sheet increased to a record $6.62 trillion this week from $4.29 trillion in the first week of March.

Over the past few weeks, the US central bank has rolled out an unprecedented amount of stimulus via rate cuts and open-ended asset purchases to keep credit flowing to shore up business and household confidence.

The Fed's balance sheet is now the equivalent of roughly 30% of the size of the US economy and could continue to expand further, as the central bank is likely to keep soaking up assets to contain the economic fallout of the coronavirus outbreak. 

Some analysts think the balance sheet expansion is likely to put tremendous pressure on the US dollar and bode well for gold, a classic haven asset. Bank of America analysts gold to rise to $3,000 over the next 18 months.