NEW YORK Feb 28 The U.S. Federal Reserve's
balance sheet shrank in the latest week with reduced holdings of
federal agency debt and mortgage-backed securities, Fed data
released on Thursday showed.
The Fed's balance sheet, a broad gauge of its lending to the
financial system, stood at $3.072 trillion on Feb. 27, compared
with a record large $3.077 trillion on Feb. 20.
The Fed's ownership of mortgage bonds guaranteed by Fannie
Mae, Freddie Mac and the Government National
Mortgage Association (Ginnie Mae) totaled $1.016 trillion
compared with $1.033 trillion the previous week.
The Fed's holdings of debt issued by Fannie Mae, Freddie Mac
and the Federal Home Loan Bank system was $73.59 billion, down
from $74.61 billion the previous week.
The Fed's holdings of Treasuries totaled $1.750 trillion as
of Wednesday versus $1.736 trillion the previous week.
The Fed's overnight direct loans to credit-worthy banks via
its discount window averaged $3 million a day compared with an
average of $8 million per day the prior week.