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

NEW YORK Aug 26 (Reuters) - The U.S. Federal Reserve's balance sheet shrank in the latest week, Fed data released on Thursday showed.

The balance sheet -- a broad gauge of Fed lending to the financial system -- slipped to $2.284 trillion in the week ended Aug. 25 from $2.297 trillion the previous week.

The central bank's ownership of mortgage bonds guaranteed by Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) and the Government National Mortgage Association (Ginnie Mae) fell to $1.103 trillion on Wednesday from $1.113 trillion a week earlier.

The Fed's holdings of debt issued by Fannie, Freddie and the Federal Home Loan Bank system slipped to $156.50 billion from the previous week's $157.21 billion.

As for emergency lending, the Fed said overnight direct loans to credit-worthy banks via its discount window averaged $28 million a day in the week ended Wednesday, up from a $12 million daily pace the previous week. (Reporting by Chris Reese; Editing by Leslie Adler)