Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
The second round of asset purchases came to a close at the end of June. Since the start of that program, combined with the reinvestment of principal payments on current security holdings, the Fed has purchased over $700 billion of Treasury securities. A statement was released by the Fed following the most recent Federal Open Market Committee meeting that gave the New York Fed the authority to continue reinvesting principal payments on the Fed’s asset holdings in order to maintain the size of the balance sheet. Also of note, the Maiden Lane II portfolio has remained fairly constant throughout June, with no securities being offered since the first week of the month. Prices on the asset classes held in the portfolio have been trending down since the beginning of March, when the Treasury began selling a similar mix of assets. On June 29, the Fed acknowledged that it had extended the U.S. dollar liquidity swap arrangements through the beginning of August 2012. The swap arrangements are held with Canada, Switzerland, England, and the European Central Bank, and they allow foreign central banks to get dollar-denominated credit that they can lend to commercial banks in their country. Those swaps arrangements have not been utilized since March, but may be necessary as the Greek debt crisis unfolds. More preparatory reverse repurchase operations were conducted in the middle of June, primarily to incorporate the newest set of government-sponsored enterprise counterparties.