Fed balance sheet contracts in latest week [1]
Reuters NEW YORK |
The Federal Reserve Building is seen in Washington June 19, 2012 Credit: Reuters/Yuri Gripas
(Reuters) - The Federal Reserve's balance sheet shrank in the latest week with a lower holdings of federal government and agency securities, Fed data released on Friday showed.
The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.853 trillion on November 21, down from $2.859 trillion on November 14.
The Fed's holdings of Treasuries totaled $1.650 trillion as of Wednesday from $1.657 trillion the previous week after it sold more debt than it purchased for its Operation Twist this week.
Operation Twist involved the Fed selling its short-dated Treasuries holdings and buying longer-dated ones on the open market in an effort to lower long-term borrowing costs. This program was expected to expire at the end of the year.
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