The Federal Reserve’s balance sheet expanded to a record $5.81 trillion in the week ended April 1, an increase of $557 billion from the prior week, the central bank said Thursday.
The balance sheet is expected to continue to set weekly records as the Fed continues its full-out press to keep credit flowing in all corners of the financial markets. The central bank is purchasing massive amounts of Treasurys and mortgaged-backed securities, and makes loans to financial firms in return for collateral. While the Fed can’t stop the economic damage due to the sudden stop in economic activity, it can try to mitigate second-round effects on markets, businesses and investors.
Bank borrowing at the Fed’s “discount window” slipped to $43.7 billion from $50.8 billion in the prior week.
Repo transactions totaled $263.1 billion, down from $352.4 billion in the week ended March 25.
Swap lines to central bank counterparties contributed to $348.5 billion in the growth of the balance sheet, up from $206 billion in the prior week.
The Fed is holding $3.34 trillion in Treasurys, up from $2.98 trillion in the prior week.
Two new programs, the primary-dealer credit facility and the money-market mutual fund liquidity facility added $85.7 billion to the Fed’s portfolio, up from $58.4 in the prior week.
The yield on the 10-year Treasury note TMUBMUSD10Y, +2.23% rose slightly to 0.618% in trading on Thursday.