MNI BRIEF: Fed's Balance Sheet Jumps USD94B To USD8.7T

The Federal Reserve's balance sheet jumped USD94.5 billion on the week to Wednesday as the central bank's discount window lending receded from last week's record high, according to data released Thursday.

Banks borrowed USD53.7 billion from the Fed's Bank Term Funding Program, up from USD11.9 billion last week, and lending at the discount window fell to USD110.2 billion, from a record USD152.8 billion last week. Loans outstanding to the bridge banks as of yesterday stood at USD179.8 billion, up from USD148.2 billion last week.

Reserve balances fell from the prior week by USD74 billion to USD3.37 trillion. There was limited usage at the Fed's standing swap lines at just over half a billion, while the Fed's foreign repo facility - FIMA - saw USD60 billion in usage. Treasuries and mortgage-backed securities continued to fall off the Fed's balance sheet.