A Look Inside Fed’s Balance Sheet — 6/4/09 Update
The Fed’s balance sheet was mostly flat in the latest week at $2.062 trillion. Increases in Treasurys holdings were offset by declines in central bank liquidity swaps and the central bank’s commercial paper facility. Direct bank lending increased after two consecutive drops, but the rise was modest.
In an effort to track the Fed’s actions, Real Time Economics has created an interactive graphic that will mark the expansion of the central bank’s balance sheet. Every Thursday afternoon, the chart will be updated with the latest data released by the Fed.
In an effort to simplify the composition of the balance sheet, some elements have been consolidated. Portfolios holding assets from the Bear Stearns and AIG rescues have been put into one category, as have facilities aimed at supporting commercial paper and money markets. The direct bank lending group includes term auction credit, as well as loans extended through the discount window and similar programs.
Central bank liquidity swaps refer to Fed programs with foreign central banks that allow the institutions to lend out foreign currency to their local banks. Repurchase agreements are short-term temporary purchases of securities from banks, which are looking for liquidity and agree to repurchase them on a specified date at a specified price.
Click and drag your mouse to zoom in on the chart. Clicking the check mark on categories can add or remove elements from the balance sheet."