(Adds detail on Maiden Lane facilities
NEW YORK, July 29 The U.S. Federal Reserve's
balance sheet decreased in the latest week, Fed data released
on Thursday showed.
The balance sheet -- a broad gauge of Fed lending to the
financial system -- was $2.308 trillion on July 28 versus
$2.315 trillion on July 21.
Fed lending remains near its record high of $2.334 trillion
hit in May. After declining early last year, the balance sheet
started accumulating mass amid the U.S. central bank's
The program, known as quantitative easing, was aimed at
broadly holding down borrowing costs and supporting the ailing
housing market as the economy recovered from the worst
recession in 70 years.
That effort was also led by the Fed's purchases of
mortgage-related securities, which came to a conclusion at the
end of March. Since then, weekly balance sheet fluctuations
have at times been influenced by the delivery of those
securities, some of have lagged.
The Fed's holdings of mortgage-backed securities backed by
housing finance companies Fannie Mae FNMA.OB and Freddie Mac
FMCC.OB totaled $1.117 trillion on July 28 versus $1.125
trillion on July 21.
The U.S. central bank's ownership of debt issued by Fannie
Mae, Freddie Mac and the Federal Home Loan Bank System was
$159.38 billion, unchanged versus the previous week.
Primary credit via the Fed's discount window averaged $11
million per day in the latest week, down from $25 million per
day in the previous week.
This report also marked the first time all three Maiden
Lane LLC facilities were in the black, with fair value readings
The entities were created to house assets related to the
firesale of Bear Stearns to JPMorgan and the bailout of AIG.
This development increases the likelihood that the New York
Fed won't lose money on its holdings of these assets.
(Reporting by Burton Frierson; Editing by Dan Grebler)