As of the week of 17 June, total Fed assets had increased by $11.1 billion to $6.74 trillion, the highest level since March 2025. Recent changes indicate that the size of United States Treasury debt held by the Federal Reserve continues to rise, while the holding of mortgage-backed securities (MBS) continues to decline.
U.S. debt holding up boosted the recovery.
On a weekly basis, this expansion is mainly due to the increase in United States Treasury debt holdings. The United States debt held by the Federal Reserve rose to $4.49 trillion, the main source of the increase in total assets.
This compares with the continued decline in the MBS warehouse to $1.96 trillion. This means that, in terms of the asset structure, the Fed continues to move in the direction of “reduce MBS and retain more government debt”.
Still above pre-disease levels
Even though the balance sheet has fallen at its peak in recent years, the total assets of the Fed are still approximately 76 per cent higher than before the epidemic. This level suggests that the size of central bank assets in the United States financial system remains at historical highs.
From a market perspective, balance sheet changes are often seen as one of the important indicators for observing the liquidity environment. The recovery in total assets often raises market concerns about the pace of subsequent liquidity investment and policy orientation.
Follow-up data noted
Next, the market will continue to follow up on the Federal Reserve ' s balance sheet data for subsequent weeks, in particular whether the US debt and MBS holdouts continue current trends.
If total assets continue to rise, it may strengthen external discussion of marginal changes in liquidity; if they fall again, it means that this growth is more likely to fluctuate in stages.