U.S. Fed balance sheet grows to $4 trillion

NEW YORK Thu Jan 16, 2014 4:44pm EST

NEW YORK (Reuters) - The U.S. Federal Reserve's balance sheet reached $4 trillion in the latest week as its latest stimulus program aimed to help the economy added more Treasuries and mortgage-backed securities to its holdings, central bank data released on Thursday showed.

On January 15, the Fed's liabilities, which are a broad gauge of its lending to the financial system, rose to $4.029 trillion from $3.986 trillion a week earlier.

The Fed's third round of quantitative easing began in late 2011 when its balance sheet was less than $3 trillion.

On December 18, the central bank decided to shrink its monthly purchases of Treasuries and MBS by $10 billion to $75 billion in January.

The Fed's holdings of Treasuries rose to $2.221 trillion as of Wednesday, up from $2.213 trillion the previous 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) jumped to $1.525 trillion from $1.490 trillion a week ago.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system totaled $54.911 billion from $55.657 billion the previous week.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $3 million a day during the week, slower than $12 million a day the previous week. For details of the Federal Reserve's balance sheet, see:

here

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.