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U.S. Fed balance sheet shrinks in latest week

US-USA-FED-DISCOUNT:U.S. Fed balance sheet shrinks in latest week

NEW YORK (Reuters) - The U.S. Federal Reserve's balance sheet shrank slightly in the latest week with reduced holdings of U.S. Treasury securities, Fed data released on Thursday showed.

The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.804 trillion on September 19, down from $2.806 trillion on September 12.

The Fed's holdings of Treasuries totaled $1.646 trillion as of Wednesday versus $1.651 trillion the previous week.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $13 million a day during the week compared with a $135 million a day average rate the prior week.

The Fed's ownership of mortgage bonds guaranteed by Fannie Mae <FNMA.OB>, Freddie Mac <FMCC.OB> and the Government National Mortgage Association (Ginnie Mae) totaled $850.14 billion versus $843.73 billion the previous week.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system totaled $87.10 billion from $87.21 billion the previous week.

(Reporting by Chris Reese; Editing by Chizu Nomiyama)



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