U.S. Fed's balance sheet grew in latest week

NEW YORK, Sept 17 | Thu Sep 17, 2009 4:30pm EDT

NEW YORK, Sept 17 (Reuters) - The U.S. Federal Reserve's balance sheet grew in the latest week on a hefty increase in its holdings of mortgage-backed securities, Fed data showed on Thursday.

The Fed's balance sheet liabilities -- a broad gauge of its lending to the financial system -- rose to $2.125 trillion on Wednesday from $2.072 trillion a week earlier.

The Fed's holding of mortgage-backed securities rose to $685.06 billion on Wednesday from $625.28 billion a week ago. (Reporting by Richard Leong; Editing by James Dalgleish)

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