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MNI BRIEF: Fed Balance Sheet Slips From Record High

(MNI) WASHINGTON
(MNI)

The Fed's balance sheet tumbled USD31 billion over the last week to USD7.15 trillion on MBS, data released Thursday showed, pushing the balance sheet down from last week's record high of USD7.18 trillion.

The decrease was driven by MBS, down USD47 billion to just over USD2 trillion. Additionally, currency swaps with foreign central banks fell again to USD7 billion, a new low since March. This was slightly offset as holdings of Treasuries increased USD17 billion, with nominal notes and bonds up USD16 billion and TIPS up USD1 billion.

On the liabilities side, the Treasury's cash balance at the Fed declined by USD46 billion to USD1.65 trillion, generating a corresponding increase in bank system reserves by USD57 billion to USD2.95 trillion.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
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MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
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