This is an interesting chart. It is supposed to highlight the situation the Federal Reserve is now in with regard to the size of its balance sheet and the what it might do next – raise short-term rates or reduce the size of its balance sheet.
Obviously its holdings are very large, but I was somewhat surprised to see how large it was in the 1930’s and 1940’s. It’s clearly larger in nominal terms. But relative to the size of the economy or adjusted for inflation it has to be significantly smaller.