Fed Assets Rise to Record $2.43 Trillion on Bond Purchases – The Federal Reserve’s total assets grew $42.2 billion to a record $2.43 trillion as the central bank increased its holdings of Treasury securities faster than its holdings of housing debt declined. Treasuries held by the Fed increased by $39.7 billion to $1 trillion as of Dec. 22, according to a weekly release by the central bank today. The Fed’s holdings of mortgage-backed securities fell by $445 million to $1 trillion and federal agency debt securities fell by $424 million to $147.5 billion. The Fed has bought $155.7 billion in Treasuries on its way to purchasing $600 billion in government debt through June 2011. The Fed is also reinvesting the proceeds of its maturing mortgage holdings.
US Fed Total Discount Window Borrowings Wed $45.1 Billion – The Fed’s asset holdings in the week ended Dec. 22 climbed to $2.431 trillion, from $2.389 trillion a week earlier, it said in a weekly report released Thursday. The Fed’s holdings of U.S. Treasury securities rose to $1.007 trillion on Wednesday from $967.55 billion. Much of the increase stems from purchases of securities set to mature over one to 10 years. Thursday’s report showed total borrowing from the Fed’s discount lending window slipped to $45.1 billion Wednesday from $45.75 billion a week earlier. But borrowing by commercial banks rose to $54 million Wednesday from $ 21 million a week earlier. Thursday’s report showed U.S. government securities held in custody on behalf of foreign official accounts rose to $3.358 trillion, from $3.340 trillion in the previous week. U.S. Treasurys held in custody on behalf of foreign official accounts grew to $2.625 trillion from $2.612 trillion in the previous week. Holdings of agency securities grew to $732.65 billion from the prior week’s $ 728.47 billion. Further data on the Fed’s balance sheet, including a breakdown of district-by- district discount window borrowing, can be found at http://federalreserve.gov/releases/h41/current/h41.pdf.