Fed's Balance Sheet: Week of August 19, 2009

by: Tyler Durden

Total Federal Reserve balance sheet assets for the week of August 12 of $2,047 billion (an run up of $57 billion from the prior week) consisting of:

  • Securities held outright: $1,449 billion (an increase of $123 billion MoM, resulting from $44.6 billion in new Treasury purchases, $69.7 billion increase in MBS and $8.6 billion in Agency Debt), or $18.6 billion increase sequentially
  • Net borrowings: $340.5 billion (the number was stale as of the update due to a lag in Fed H.3 borrowing update)
  • Float, liquidity swaps, Maiden Lane and other assets: $258 billion (another major decrease of $78.8 billion month over month due to a continued reduction in Central Bank Liquidity Swaps ($21 billion) and ($54) billion in CPFF outstandings). The rate of decline sequentially has, however, slowed yet again. It appears the Fed is at the threshold for removing Swap and CPFF liquidity.

Last week's $300 million decline in Foreign Holdings was promptly reversed and this week saw an increase of $7.2 billion. Yet, like last week, the comparison between domestic and foreign weekly securities purchases is trivial: $7 billion versus $86 billion: the US is promptly becoming its own largest debtor... by a factor more than 10x.