US Fed balance rose to a record $ 6.42 trillion

US, WASHINGTON (ORDO NEWS) — The balance of the US Federal Reserve this week rose to a record $ 6.42 trillion, as the regulator takes unprecedented measures to support the economy in the context of the coronavirus pandemic.

Fed balance as of Wednesday increased by almost $ 300 billion from $ 6.13 trillion a week earlier, writes Reuters .

Now the balance of the central bank is equivalent to about 30% of the size of the American economy before the crisis. The Fed is expected to continue to grow. The regulator promised to buy an unlimited number of treasury bonds and mortgage-backed securities to support the financial market.

The volume of mortgage-backed securities on the Fed’s balance sheet last week increased from $ 1.46 trillion to $ 1.57 trillion. The volume of US Treasury bonds on the balance sheet of the central bank increased from $ 3.63 trillion to $ 3.79 trillion.

The use of currency swap lines that allow foreign central banks to provide dollar liquidity in their jurisdictions has increased to $ 378.3 billion as of Wednesday from $ 358.1 billion a week earlier.

Primary dealership loans increased to $ 33.4 billion from $ 33 billion the previous week. The use of the money market mutual fund support program , in contrast, fell to $ 50.7 billion from $ 53.2 billion a week earlier.

The Federal Reserve also continued to issue loans directly to banks through a discount window. As of Wednesday, these borrowings fell to $ 36.3 billion from $ 43.45 billion the previous week.


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