2012 Economic Calendar
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Fed Balance Sheet
Released On 5/17/2012 4:30:00 PM For wk5/16, 2012
PriorActual
Total Assets - Weekly Change$-0.1 B$-13.2 B
Reserve Bank credit - Weekly Change$-0.6 B$-4.8 B

Highlights
There was a lot of technical movement in the latest Fed balance sheet report. For the May 16 week, total assets dropped $13.2 billion after dipping $0.1 billion the prior week.

The biggest component move actually was on the upside with mortgage-backed securities rising $10.4 billion. But several components posted notable declines. Holdings of Treasuries fell $9.1 billion, "other assets" (largely those denominated in foreign currencies) fell $8.2 billion, and net portfolio holdings of Maiden Lane III LLC dropped $5.2 billion.

Total assets for the May 16 week declined to $2.853 trillion.

Reserve Bank credit for May 16 week fell $4.8 billion after slipping $0.6 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.
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
 
[Chart]
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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