The Fed's balance sheet in the latest week shows that the Fed is all in for helping provide liquidity for Europe. And Operation Twist is focusing on mortgage-backed securities. For the December 14 week, the Fed's balance sheet spiked a massive $81.8 billion (yes, $81.8 billion) after expanding $6.4 billion the week before. The surge in the latest week was led by a $52.0 billion increase in central bank liquidity swaps. Mortgage-backed securities gained a huge $31.0 billion and "other assets" (largely those denominated in foreign currencies) rose $3.9 billion. Holdings of Treasuries slipped $1.5 billion. Total assets for the December 14 week increased to $2.905 trillion.
Reserve Bank credit for the December 14 week jumped $69.2 billion after rebounding $4.7 billion the week before.
Note: Total assets in the Fed's H.4.1 report are Wednesday levels while Reserve Bank credit is an average of daily figures for the week ending on the same Wednesday. Changes in total assets are from Wednesday to Wednesday while changes in Reserve Bank credit are for weekly averages.