Released On 11/29/2012 4:30:00 PM For wk11/28, 2012
Total Assets - Weekly Change
Reserve Bank credit - Weekly Change
For the November 28 week, total assets declined $19.8 billion, following a $6.1 billion drop the prior week. The decrease was due to a $17.0 billion fall in mortgage-backed securities. Treasuries declined $3.8 billion. "Other assets" (largely those denominated in foreign currencies) rose $1.1 billion. Total assets for the November 28 week stood at $2.853 trillion.
Reserve Bank credit for the November 28 week dropped $19.8 billion after rising $20.0 billion the prior week.
The Fed's balance sheet is a report showing factors supplying reserves into the banking system and factors absorbing (using) reserve funds. Essentially, the balance sheet shows the various Fed programs for injecting liquidity into the economy and how much the Fed has used each for adding or withdrawing reserves. This report is called Factors Affecting Reserve Balances - or the "H.4.1" report using Fed jargon.
Why Investors Care
The Fed began using its balance sheet to expand liquidity starting in late 2008. Quantitative easing QE1 started in late 2008 and QE2 began in late 2010 and ended in June 2011. However, the level of the Fed's assets (reflecting available liquidity) remains quite elevated.
Data Source: Haver Analytics