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MNI BRIEF: Fed Balance Sheet Sets New Record, as Lending Jumps

(MNI) WASHINGTON
WASHINGTON (MNI)

The Federal Reserve's balance sheet jumped to a record USD7.363 trillion this week on increased holdings of MBS and Treasuries, data released Thursday showed, and as some of the Fed's 13(3) facilities showed their largest weekly jump.

Over the past week the Fed's balance sheet increased USD120 billion, primarily from a USD75 billion increase in MBS holdings. The Fed also purchased about USD32 billion in Treasuries.

The Main Street lending program and the municipal liquidity facility also saw their largest weekly jumps on record as they near termination at year-end. Main Street grew to USD10 billion from USD7 billion and the municipal facility jumped by USD5 billion to a total of USD6 billion. The nonpartisan Congressional Research Service said earlier Thursday the Treasury secretary has the authority to extend the Fed lending facilities, an interpretation that contradicts what Secretary Steven Mnuchin has said.

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

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