The Federal Reserve released data on Friday that showed a $2.4 billion decrease in its total liabilities for the week prior. However, America’s central bank still has a balance sheet showing liabilities in excess of $2 trillion as it continues to buy mortgage debt to provide support to the credit market.
For the week ended last Wednesday, the Federal Reserve had total liabilities of $2.189 trillion, down from $2.192 trillion.
The central bank may see its balance sheet shrink in coming months as it is winding down many debt purchasing programs. Last month the Fed’s Treasury buying program came to an end after slowing purchases in August and September.
According to the Fed’s report, it held agency mortgage-backed securities totaling $852.12 billion at the week’s end; that compares to $847.04 billion a week earlier.
Purchases of mortgage assets by the Federal Reserve have helped keep mortgage rates low this year. That trend continued as 30-year fixed mortgage rates fell to 4.78 percent last week, marking the fourth straight decline in the benchmark rate.
Elsewhere, the Fed said its overnight discount window saw a slight increase for the week ended November 25. Loans averaged $108.48 billion per day, compared to $108.25 billion.
