2018 Economic Calendar
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Fed Balance Sheet  
Released On 5/24/2018 4:30:00 PM For wk5/23, 2018
PriorActual
Level$4.338 T$4.337 T
Total Assets - Weekly Change$-20.6 B$-0.3 B
Reserve Bank credit - Weekly Change$-3.2 B$-15.4 B

Highlights
The Federal Reserve's assets totaled $4.337 trillion in the May 23 week, down $0.3 billion from the prior week and down $123 billion from the beginning of balance sheet unwinding in October 2017.

Treasury holdings are $2.387 trillion in the latest week, down $78 billion since October and roughly on target. Treasuries are scheduled to decline to $2.375 trillion by the end of this month.

In contrast to Treasuries, holdings of mortgage-backed securities are still not coming down fast enough, at $1.744 trillion in the week which is down $24 billion since October vs a scheduled decline by month end to $1.708 trillion. Note that mortgage-backed unwinding can be uneven due to unscheduled prepayments of principal as well as timing differences in payments and settlements.

Securities, unamortized premiums and discounts, repurchase agreements, and loans were the main factor draining reserves, down $1.7 billion in the latest week.

Reserve Bank credit for the May 23 week decreased $15.4 billion after decreasing $3.2 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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