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Fed Balance Sheet  
Released On 12/6/2018 4:30:00 PM For wk12/5, 2018
PriorActual
Level$4.097 T$4.086 T
Total Assets - Weekly Change$-9.0 B$-11.1 B
Reserve Bank credit - Weekly Change$-6.2 B$-16.1 B

Highlights
Federal Reserve's assets totaled $4.086 trillion in the December 5 week, down $11.1 billion from the prior week and down $374.4 billion from the beginning of balance sheet unwinding in October 2017.

Treasury holdings were $2.241 trillion in the December 5 week, down $12.6 billion in the week and down $224.9 billion since October last year. Treasuries were scheduled to decline to $2.225 trillion at the end of November. The target for the end of December is $2.195 trillion.

The unwinding of mortgage-backed securities (MBS) has been slower than Treasuries and no progress was made in the latest week with MBS unchanged at $1.653 trillion and down $114.7 billion since October last year. By November's end, MBS holdings were scheduled to decline to $1.608 trillion with December's target at $1.588 trillion. Note that mortgage-backed unwinding can be uneven due to unscheduled prepayments of principal as well as timing differences in payments and settlements.

The largest factor draining reserves in the week was Treasuries.

Reserve Bank credit for the December 5 week decreased $16.1 billion after decreasing $6.2 billion in the prior week.

Definition
The Fed's balance sheet is a weekly report presenting a consolidated balance sheet for all 12 Reserve Banks that lists factors supplying reserves into the banking system and factors absorbing reserves from the system. The report is officially named Factors Affecting Reserve Balances, otherwise known as the "H.4.1" report.

In September 2017, the Fed announced a program to reduce its balance sheet by the gradual reduction of both its Treasury and mortgage-backed security holdings. The monthly reductions, executed by reinvesting a decreasing amount of maturing securities, began in October 2017 and will gradually increase in size before hitting a plateau in October 2018 where they will hold until the FOMC judges that the Fed is holding no more securities than necessary. Under the schedule for 2018, the Fed's Treasury holdings will be reduced by $270 billion while holdings of mortgage-backed securities will be reduced by $180 billion.  Why Investors Care
 
 

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