Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
Taking a step back and looking at the bigger picture, larger trends in the balance sheet have continued in June. Purchases of Treasury securities continue to grow at a steep pace due to the second round of large-scale asset purchases and the reinvestment of maturing agency securities. Treasury purchases related to large-scale purchasing programs have now grown from just over $320 billion in August 2010 to $1.04 trillion this week. “Lending to financial institutions,” which incorporates programs that acted as an expansion of the discount window, has remained fairly flat over that same time period, bouncing around between $125 billion and $150 billion. Programs that were extended to new markets, like money market funds and commercial paper, have been declining since August 2010. Falling under “providing liquidity to key credit markets,” these programs have dropped from nearly $110 billion to just under $78 billion. One final note, the counterparties for the Fed’s reverse repurchase agreement operations have now been expanded to include government sponsored enterprises. Eligible institutions would include both Fannie Mae and Freddie Mac, as well as all Federal Home Loan Banks.