MNI BRIEF: Fed Balance Sheet Near Record High, +$77B to $7.15T

The Fed's balance sheet climbed USD77 billion over the last week to USD7.15 trillion on MBS and Treasuries, data released Thursday showed.

The Fed's increased holdings were driven by RMBS, up USD64 billion leading to a record USD2.05 trillion in total MBS holdings. Treasuries increased by another USD15 billion. That growth was offset as currency swaps with foreign central banks fell again by USD8 billion to a total of USD8 billion, a new low since March.

The Fed's total assets Thursday were just shy of the record USD7.17 trillion June 10 , and since then gains from asset purchases have been somewhat matched by the roll-off from the Fed's emergency measures and FX swaps. Many of the Fed's emergency lending programs are currently scheduled to be terminated at year-end, but former officials anticipate they are likely to be extended for a second time.