Question

Go to the St. Louis Federal Reserve FRED database, and find data on federal debt held by the Federal Reserve (FDHBFRBN), by private investors (FDHBPIN), and by international and foreign investors (FDHBFIN). Using these series, calculate the total amount held and the percentage held in each of the three categories for the most recent quarter available. Repeat for the first quarter of 2000, and compare the results.

Short answer

2021:Q4 - Total amount- $31,372.199 billions; Percentage held by federal reserve - 19.75%; Percentage held by private investors - 55. 75%; Percentage held by international and foreign investors - 24.67%

2000:Q1 - Total amount- $4,769.5 billions; Percentage held by federal reserve - 10.51%; Percentage held by private investors - 66.74%; Percentage held by international and foreign investors - 22.75%

Step-by-step solution

Step 1. Introduction

The data obtained for the recent quarter and for the firt quarter of 2000 can be shown as,

observation_date	Held by federal reserve	Held by private investors	Held by foreign and international investors
2000-01-01	501.700	3182.8	1085.0
2021-10-01	6141.499	17491.3	7739.4

Step 2. Explanation

From the above data, the total amount held in 2021:Q4 can be obtained as,

$(\$6,141.499+\$1,7491.3+\$7739.4)\mathrm{billions}=\$31,372.199$

Now, the percentage hheld in each category can be obtained as,

$$\begin{gathered} \mathrm{Federal}\mathrm{debt}\mathrm{held}\mathrm{by}\mathrm{the}\mathrm{federal}\mathrm{reserve}=\frac{\$6,141.499}{\$31,372.199}\times 100=19.57\% \\ \mathrm{Federal}\mathrm{debt}\mathrm{held}\mathrm{by}\mathrm{private}\mathrm{investors}=\frac{\$17,491.3}{\$31,372.199}\times 100=55.75\% \\ \mathrm{Federal}\mathrm{debt}\mathrm{held}\mathrm{by}\mathrm{international}\mathrm{and}\mathrm{foreign}\mathrm{investors}=\frac{\$7,739.4}{\$31,372.199}\times 100=24.67\% \end{gathered}$$

The total amount of federal debt held in 2000:Q1 can be obtained as,

role="math" localid="1649177091243" $=\$(501.7+3,182.8+1085)\mathrm{billions}=\$4,769.5billions$

Now, the percentage held in each category can be obtained,

$$\begin{gathered} \mathrm{Federal}\mathrm{debt}\mathrm{held}\mathrm{by}\mathrm{the}\mathrm{federal}\mathrm{reserve}=\frac{501.7}{4,769.5}\times 100=10.51\% \\ \mathrm{Federal}\mathrm{debt}\mathrm{held}\mathrm{by}\mathrm{private}\mathrm{investors}=\frac{3,182.8}{4,769.5}\times 100=66.74\% \\ \mathrm{Federal}\mathrm{debt}\mathrm{held}\mathrm{by}\mathrm{tinternational}\mathrm{and}\mathrm{foreign}\mathrm{investors}=\frac{1085}{4,769.5}\times 100=22.75\% \end{gathered}$$