Federal Reserve Balance Sheet Update: Week Of October 7
Total Federal Reserve balance sheet assets for the week of October 7 of $2,119 billion ($1
billion lower compared to the prior week's $2,121 billion). Fed assets consisted of:
- Securities held outright: $1,595 billion
(an increase of $93.5 billion MoM, resulting from $16 billion in new
Treasury purchases, $67 billion increase in MBS and $11 billion in Agency Debt), or $6.5 billion increase sequentially
- Net borrowings: $289 billion, which incorporate a new all time high of total borrowed bank reserves. As a reminder borrowings consist of total borrowed reserves less total nonborrowed reserves. This is precisely the focal point of HR1207. By definition, nonborrowed reserves are equal to total reserves minus
borrowed reserves. Borrowed reserves are equal to credit extended
through the Federal Reserve's regular discount window programs as well
as credit extended through the TAF. To maintain a level of total
reserves consistent with the Federal Open Market Committee's target
federal funds rate, increases in borrowed reserves must generally be
met by a commensurate decrease in nonborrowed reserves, which is
accomplished through a reduction in the Federal Reserve's holdings of
securities and other assets.
- Float, liquidity swaps, Maiden Lane and other assets: $235.6
a $7.9 billion decrease based on a $885 million reduction in CPFF and a $6.9 billion reduction in liquidity swaps, bringing these to a 52 week low. To paraphrase Alan Grayson: collapsing dollar - record low liquidity swaps... Coincidence?
Foreign holdings increased by $5.6 billion to 2,860 billion.