2018 Economic Calendar
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Fed Balance Sheet  
Released On 6/14/2018 4:30:00 PM For wk6/13, 2018
PriorActual
Level$4.319 T$4.325 T
Total Assets - Weekly Change$-8.3 B$5.7 B
Reserve Bank credit - Weekly Change$-10.2 B$3.0 B

Highlights
The Federal Reserve's assets totaled $4.325 trillion in the June 13 week, up $5.7 billion from the prior week and down $135.5 billion from the beginning of balance sheet unwinding in October 2017.

Treasury holdings were $2.378 trillion in the June 13 week and down $87.5 billion since October. Treasuries are scheduled to decline another $21 billion to $2.357 trillion by the end of this month.

Holdings of mortgage-backed securities remain especially high, at $1.740 trillion which is up in the week and down only $28.4 billion since October. To meet its month-end target of $1.696 trillion, the Fed, in the next couple of weeks, would have to let $44 billion of MBS run-off without reinvesting. That would be more than it has run off to date. Note that mortgage-backed unwinding can be uneven due to unscheduled prepayments of principal as well as timing differences in payments and settlements.

MBS was in fact the largest factor adding reserves, not draining reserves, in the latest week, up $5.1 billion.

Reserve Bank credit for the June 13 week increased $3.0 billion after decreasing $10.2 billion in the prior week.

Definition
The Fed's balance sheet is a weekly report presenting a consolidated balance sheet for all 12 Reserve Banks that lists factors supplying reserves into the banking system and factors absorbing reserves from the system. The report is officially named Factors Affecting Reserve Balances, otherwise known as the "H.4.1" report.

In September 2017, the Fed announced a program to reduce its balance sheet by the gradual reduction of both its Treasury and mortgage-backed security holdings. The monthly reductions, executed by reinvesting a decreasing amount of maturing securities, began in October 2017 and will gradually increase in size before hitting a plateau in October 2018 where they will hold until the FOMC judges that the Fed is holding no more securities than necessary. Under the schedule for 2018, the Fed's Treasury holdings will be reduced by $270 billion while holdings of mortgage-backed securities will be reduced by $180 billion.  Why Investors Care
 
 

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