Federal Reserve Balance Sheet Actions and ActivitiesThe Federal Reserve prepares this balance sheet report to help further its commitment to trans-parency about actions taken in connection with two of its key functions—conducting monetarypolicy to meet its congressional mandate of maximum employment and price stability as well aspromoting financial stability. The report contains a snapshot of Federal Reserve actions andactivity in managing its balance sheet, including• an overview of the Federal Reserve’s balance sheet trends;• a review of changes in key Federal Reserve assets; and• a review of changes in key Federal Reserve liabilities.The Role of the Balance Sheet in Meeting the Federal Reserve’sMonetary Policy MandateThe Federal Reserve conducts monetary policy in accordance with its mandate from Congress: topromote maximum employment and stable prices in the U.S. economy. Because smooth financialmarket functioning facilitates the transmission of monetary policy, the Federal Reserve monitorsfinancial stability risks and takes appropriate actions to help ensure that financial institutions andfinancial markets can efficiently support the flow of credit to households, communities, and busi-nesses. Many of the actions that the Federal Reserve takes for monetary policy and financial sta-bility purposes are reflected on the balance sheet.The Federal Reserve considers transparency about the goals, conduct, and stance of monetarypolicy to be fundamental to the effectiveness of monetary policy. Transparency about monetarypolicy also helps promote the accountability of the Federal Reserve to Congress and the public. Asa result, and in accordance with the Federal Reserve Act, the Federal Reserve publishes eachweek the H.4.1 statistical release, “Factors Affecting Reserve Balances of Depository Institutionsand Condition Statement of Federal Reserve Banks.”11 See the Federal Reserve’s website at https://www.federalreserve.gov/releases/h41/.Federal Reserve Balance SheetDevelopmentsNovember 2023BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEMwww.federalreserve.govGeneral Balance Sheet TrendsSince the previous report, the size of the Federal Reserve’s balance sheet decreased roughly$700 billion, from about $8.7 trillion on March 29, 2023, to about $8.0 trillion as of Sep-tember 27, 2023 (table 1).Table 1. Assets, liabilities, and capital of the Federal Reserve System($ billions)ItemMarch 29, 2023September 27, 2023Change fromMarch 29, 2023Total assets8,7068,002−704Securities held outright7,9267,440−486U.S. Treasury securities5,3294,958−371Federal agency debt securities220Agency mortgage-backed securities2,5942,480−114Repurchase agreements550−55Foreign official550−55Other000Loans343198−145Discount window883−85Bank Term Funding Program6410844Paycheck Protection Program Liquidity Facility105−5Other credit extensions18082−98Net portfolio holdings of Main Street Facilities LLC2219−3Net portfolio holdings of Muni...
