WASHINGTON -- The balance sheet of the U.S. Federal Reserve grew
in the past week as the central bank continued with a plan to
adjust its portfolio and stimulate an economy it expects to grow
only modestly this year.
The Fed's asset holdings in the week ended March 7 were $2.896
trillion, up from $2.887 trillion a week earlier, it said in a
weekly report released Thursday.
The Fed's holdings of U.S. Treasury securities grew to $1.660
trillion, up slightly from $1.659 trillion a week earlier. The
central bank's holdings of mortgage-backed securities increased to
$853.89 billion, up from $840.80 billion in the previous week.
The Fed's portfolio has more than doubled since the financial
crisis of 2008 and 2009, as the central bank bought mortgage-backed
securities and government bonds to keep interest rates low and
stimulate the economy.
Fed officials plan to continue with a shakeup announced in
September of the central bank's securities portfolio to hold more
long-term government debt and mortgage bonds, a move intended to
spur spending and investment by making borrowing cheaper.
Thursday's report showed total borrowing from the Fed's discount
lending window was $7.38 billion on Wednesday, down from $7.43
billion a week earlier.
Commercial banks borrowed $3 million from the discount window.
They borrowed $12 million in the previous week.
U.S. government securities held in custody on behalf of foreign
official accounts grew to $3.473 trillion, up from $3.460 trillion
the previous week.
U.S. Treasurys held in custody on behalf of foreign official
accounts rose to $2.734 trillion, up from $2.720 trillion in the
previous week. Holdings of federal agency securities edged down to
$ 739.15 billion, down from $739.21 billion in the prior week.
Further data on the Fed's balance sheet, including a breakdown
of district-by-district discount window borrowing, can be found at
http://federalreserve.gov/releases/h41/current/h41.pdf
By Kristina Peterson, Dow Jones Newswires; 347-882-7215;
kristina.peterson@dowjones.com