UPDATE 1-U.S. Fed’s balance sheet rises in latest week

(Adds details, background)

NEW YORK, May 13 (BestGrowthStock) – The U.S. Federal Reserve’s
balance sheet rose for the first time in four weeks, Fed data
released on Thursday showed.

The Fed’s balance sheet — a broad gauge of its lending to
the financial system — climbed to $2.318 trillion in the week
ended May 12 from $2.308 trillion in the week ended May 5.

The balance sheet had been accumulating mass early this
year amid the Fed’s asset-buying program, or quantitative
easing. The program was aimed at holding down credit rates
while the economy recovered from the worst recession in 70
years.

That effort was led by the Fed’s purchases of
mortgage-related securities, the conclusion of which at the end
of March is expected to stabilize the balance sheet.

The balance sheet hit a record high of $2.322 billion in
the week ended April 14.

The Fed’s holdings of mortgage-backed securities backed by
housing finance companies Fannie Mae (FNM.N: ) and Freddie Mac
(FRE.N: ) were $1.098 trillion on May 12, up slightly from $1.097
trillion the previous week.

Although the Fed’s buying program has ended it may still be
taking delivery of some of those purchases.

The central bank’s ownership of debt issued by Fannie Mae,
Freddie Mac and the Federal Home Loan Bank System was $168.11
billion, unchanged from a week earlier.

The Fed’s direct overnight lending to top-rated banks eased
from last week. Primary credit via the Fed’s discount window
averaged $5.15 billion a day versus $5.35 billion in the
previous week.

Stock Market

(Reporting by Chris Reese; Editing by Dan Grebler)

UPDATE 1-U.S. Fed’s balance sheet rises in latest week