UPDATE 1-U.S. Fed balance sheet grows a bit on Treasuries

(Adds details, background)

NEW YORK, Oct 14 (BestGrowthStock) – The U.S. Federal Reserve’s
balance sheet grew slightly in the latest week as the central
bank accumulated more Treasuries in a bid to stimulate spending
and investment, Fed data released on Thursday showed.

The balance sheet — a broad gauge of Fed lending to the
financial system — edged up to $2.291 trillion in the week
ended Oct. 13 from $2.290 trillion a week ago.

In August, the Fed reinstated purchases of U.S. government
debt using funds from maturing mortgage securities on its book.
The move is intended to maintain the size of its balance sheet
and to support liquidity in the banking system.

The central bank’s holding of U.S. government securities
totaled $821.2 billion on Wednesday, up from $819.07 billion
last week.

Since mid-August, it has purchased $44.1 billion in
Treasury securities. [ID:nN20EDTABL]

Last month, the U.S. central bank hinted it is open to
expand its balance sheet if the economy warrants more policy
easing. Analysts predict the Fed may add up to $1 trillion in
Treasuries on its balance sheet. See [ID:nN20109053]
For balance sheet graphic: http://link.reuters.com/buf92k

The central bank’s ownership of mortgage bonds guaranteed
by Fannie Mae (FNMA.OB: ), Freddie Mac (FMCC.OB: ) and the
Government National Mortgage Association (Ginnie Mae) held
steady from last week at $1.079 trillion.

The Fed’s holdings of debt issued by Fannie, Freddie and
the Federal Home Loan Bank system slipped to $152.18 billion
from $154.11 billion.

As for emergency lending, the Fed said overnight direct
loans to credit-worthy banks via its discount window averaged
$15 million a day in the week ended Wednesday, slower than the
$89 million daily rate the previous week.

(Reporting by Richard Leong; Editing by Padraic Cassidy)

UPDATE 1-U.S. Fed balance sheet grows a bit on Treasuries