Central Banks

Thursday, July 23, 2020 - 17:52

MNI POLICY: Fed Assets Up $6B to $7.0T; Main Street Aid Flat

By Evan Ryser

WASHINGTON (MNI) - The Fed's balance sheet remained on an even keel over the last week, data released Thursday showed, as "Main Street" lending stalled.

The Fed's portfolio grew USD6 billion to USD6.96 trillion. Growth in Treasuries and MBS were mostly offset as liquidity swaps kept rolling off.

Holdings of Treasuries increased by USD13 billion and holdings of mortgage-backed securities grew by USD22 billion.

FX swaps continued to roll off, with a weekly decrease of USD33 billion to USD122 billion, down from highs of USD450 billion in late May.


The Fed's Main Street facility grew by USD2 million over the prior week, the data showed when controlled for Treasury contributions. That was down from USD12 million in take up last week when the facility first became operational.

Usage of the Fed's emergency 13(3) liquidity facilities generally remained flat or declined.

Purchases of corporate bonds continued at a USD123 million daily average, but down from highs of USD300 million per day. The central bank has purchased a total of USD2 billion in corporate bonds.

--MNI Washington Bureau; +1 202 371 2121; email: evan.ryser@marketnews.com


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