U.S. Fed increases holdings of Treasury securities

Xinhua News Agency | Sep 13, 2019 at 5:16 AM

WASHINGTON, Sept. 12 (Xinhua) -- Data from the U.S. Federal Reserve (Fed) showed on Thursday that the central bank increased its holdings of U.S. Treasury securities.

For the week ending Sept. 11, the average daily figure of Fed holdings of U.S. Treasury securities rose by 3,016 million U.S. dollars to 2,098,156 million dollars.

The majority of U.S. Treasury securities that the Fed holds were longer term securities issued by the U.S. government like Treasury notes and Treasury bonds, which totaled 1,954,203 million dollars, according to the Fed.

The U.S. Fed purchased government-issued securities and other securities like Mortgage-backed securities (MBS) from the market in order to boost the money supply and encourage lending and investment after the 2008 financial crisis.

Commonly known as "Quantitative Easing," the unconventional monetary policy left the central bank with a massive holding of securities and MBS, providing more liquidity to the U.S. financial market to counter the headwind of crisis.

Meanwhile, the data also showed that the central bank maintained its holding of the MBS. The average daily figure of MBS holdings remained unchanged at 1,489,605 million dollars for the week ending Sept. 11.