Econoday Economic Report: Fed Balance Sheet November 17, 2011

2011 Economic Calendar

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Fed Balance Sheet

Released On 11/17/2011 4:30:00 PM For wk11/16, 2011

	Prior	Actual
Total Assets - Weekly Change	$17.7 B	$-8.2 B
Reserve Bank credit - Weekly Change	$-6.0 B	$8.4 B

Highlights
The Fed's balance sheet for the November 16 week declined $8.2 billion after rebounding $17.7 billion the prior period. The latest decrease was led by a $7.3 billion drop in holdings of mortgage-backed securities. Also declining were "other assets" (largely those denominated in foreign currencies) and net portfolio holdings of Maiden Lane LLC, down $6.0 billion and $2.4 billion, respectively. Purchases of Treasuries were $7.7 billion, following a $13.9 billion boost the week before. Total assets for the November 16 week fell to $2.834 trillion.

Reserve Bank credit for the November 16 week rose $8.4 billion, following a $6.0 billion decrease the prior period.

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.

Definition
The Fed's balance sheet is a report showing factors supplying reserves into the banking system and factors absorbing (using) reserve funds. Essentially, the balance sheet shows the various Fed programs for injecting liquidity into the economy and how much the Fed has used each for adding or withdrawing reserves. This report is called Factors Affecting Reserve Balances - or the "H.4.1" report using Fed jargon. Why Investors Care