U.S. Fed balance sheet shrinks on the week

NEW YORK Aug 16 (Reuters) - The U.S. Federal Reserve's balance sheet shrank on the week with selling of 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 $2.816 trillion on Aug. 15, down from $2.839 trillion on Aug. 8.

The Fed's holdings of Treasuries totaled $1.646 trillion as of Wednesday, versus $1.652 trillion the previous week.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $24 million a day during the week from the $2 million a day average rate the prior week.

The Fed's ownership of mortgage bonds guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association (Ginnie Mae) was $854.16 billion from $853.49 the previous week.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system totaled $89.10 billion from $91.03 billion the previous week.