Fed balance sheet grows second straight week

NEW YORK (Reuters) - The U.S. Federal Reserve's balance sheet grew for a second straight week on its purchases of more federal government debt, Fed data released on Thursday showed.

The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.839 trillion on August 8, up from $2.834 trillion on August 1.

The Fed's holdings of Treasuries totaled $1.652 trillion as of Wednesday, versus $1.649 trillion the previous week.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $2 million a day during the week, down from the $32 million a day average rate the prior week.

The Fed's ownership of mortgage bonds guaranteed by Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) and the Government National Mortgage Association (Ginnie Mae) was $853.49 billion, little changed from $853.48 the previous week.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system totaled $91.03 billion, unchanged from the previous week.

(Reporting by Richard Leong; Editing by Padraic Cassidy)