| Fed Balance Sheet |
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Released On 5/3/2012 4:30:00 PM For wk5/2, 2012
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Prior | Actual |
| Total Assets - Weekly Change | $-8.9 B | $-2.3 B | | Reserve Bank credit - Weekly Change | $-5.5 B | $-14.6 B |
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Highlights
For the May 2 week, the Fed's balance sheet dipped $2.3 billion after shrinking $8.9 billion the previous week.
The biggest decline was for central bank liquidity swaps with decreased $4.8 billion. "Other assets" (largely those denominated in foreign currencies) grew $1.8 billion. Other components were little changed.
Total assets for the May 2 week fell to $2.867 trillion.
Reserve Bank credit for May 2 week decreased $14.6 billion after declining $5.5 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.
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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
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![[Chart]](showimage.asp?imageid=22469)
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The Fed began using its balance sheet to expand liquidity starting in late 2008. Quantitative easing QE1 started in late 2008 and QE2 began in late 2010 and ended in June 2011. However, the level of the Fed's assets (reflecting available liquidity) remains quite elevated.
Data Source: Haver Analytics
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