MNI BRIEF: Fed's Balance Sheet Assets Close to Record High

The Federal Reserve's balance sheet edged up to USD7.175 trillion this week on increased holdings of Treasuries, putting its total assets just shy of the previous record set in late October, data released Thursday showed.

Over the last week the Fed's assets increased USD18 billion, primarily from a USD15 billion increase in Treasury holdings. The Fed purchased about USD15 billion in nominal notes and bonds, pushing up the central bank's total assets to just shy of its previous record of USD7.177 trillion Oct. 22.

On the liabilities side of the balance sheet, the Treasury's cash balance fell to USD1.57 trillion, a new low since mid-June as the federal government draws down on its record savings. The dip in the Treasury cash balance generated a corresponding USD13 billion increase in bank reserves with totals reaching just shy of USD3 trillion.