FRB美联储资产负债表发展季度报告-quarterly_balance_sheet_developments_report_201803_28页_535kb

Summary of the Federal Reserve's Quarterly Report on Balance Sheet Developments (March 2018)

Core Content

This report outlines recent developments in the Federal Reserve's balance sheet and monetary policy tools, emphasizing transparency and compliance with the Dodd-Frank Act. It includes updates on the Federal Funds Rate, balance sheet normalization, financial statements, and the operations of key monetary policy instruments.

Main Points

1. FOMC Raises Federal Funds Rate and Adjusts Policy Tools

• On December 13, 2017, the FOMC raised the target federal funds rate to 1-1/4 to 1-1/2 percent.
• The FOMC directed the Federal Reserve Bank of New York (FRBNY) to:
  • Roll over maturing Treasury securities exceeding $12 billion per month.
  • Reinvest principal payments from agency debt and MBS exceeding $8 billion per month.
• These thresholds were increased from previous levels of $6 billion and $4 billion, respectively, to support balance sheet normalization.
• The interest rate on required and excess reserves was raised to 1.50%, and the primary credit rate was increased to 2.00% effective December 14, 2017.

2. Balance Sheet Normalization

• The Federal Reserve initiated a normalization program in October 2017 to reduce the size of its balance sheet.
• The program involves gradually decreasing the reinvestment of principal payments from securities held in the System Open Market Account (SOMA).
• The caps for reinvestment were initially set at $6 billion per month for Treasury securities and $4 billion per month for agency debt and MBS, with plans to increase them to $30 billion and $20 billion, respectively.
• The goal is to reduce the supply of reserve balances to a level that is "considerably below that seen in recent years but larger than before the financial crisis."

3. Federal Reserve Financial Statements

• On March 23, 2018, the Federal Reserve released the 2017 audited financial statements for the entire system.
• These statements include details on the combined Federal Reserve Banks, individual Reserve Banks, and the Board.
• The financial statements are available on the Board's website.

4. Balance Sheet Overview (as of February 28, 2018)

• Total assets: $4,393 billion (down $68 billion from October 25, 2017).
• Selected assets:
  • Securities held outright: $4,189 billion (down $54 billion).
  • U.S. Treasury securities: $2,424 billion (down $41 billion).
  • Federal agency debt securities: $4 billion (down $2 billion).
  • Mortgage-backed securities (MBS): $1,760 billion (down $11 billion).
• Total liabilities: $4,354 billion (down $66 billion from October 25, 2017).
• Total capital: $39 billion (down $2 billion from October 25, 2017).

5. Key Monetary Policy Tools

a. Open Market Operations (OMOs)

• The FRBNY conducts OMOs to manage reserve balances and keep the federal funds rate within the target range.
• OMOs can be permanent (e.g., outright purchases and sales of securities) or temporary (e.g., repos and reverse repos).
• Permanent OMOs are used to reinvest principal payments and roll over maturing Treasury securities.
• Temporary OMOs are used for short-term liquidity management and to control short-term interest rates.

b. Reverse Repurchase Agreements (RRPs)

• The FRBNY conducts RRPs to drain reserves from the banking system.
• As of February 28, 2018, outstanding RRPs totaled $44.5 billion.
• RRPs are conducted as competitive auctions or full-allotment operations, with interest rates based on market rates.

c. Term Deposit Facility (TDF)

• The TDF offers interest-bearing term deposits to eligible institutions.
• It is used to manage the quantity of reserve balances and support reduction in monetary accommodation.
• Term deposits can be awarded through competitive auctions, fixed-rate formats, or floating-rate formats.
• An early withdrawal feature was introduced in September 2014.

d. Securities Lending Program

• The FRBNY provides overnight securities lending to address market pressures for specific Treasury securities.
• The program includes lending of housing-related GSE debt securities.
• Outstanding amounts are reported weekly in the H.4.1 statistical release.

e. Discount Window Lending

• Discount window lending to depository institutions remained at a low level, with $0.3 billion in collateral pledged as of February 28, 2018.
• The primary credit rate was increased to 2.00% effective December 14, 2017.
• The discount window serves as a source of liquidity for depository institutions and the banking system during times of need.

6. Compliance with Dodd-Frank Act

• The report includes information on the Federal Reserve's compliance with the Dodd-Frank Act's transparency provisions.
• The Board has been remitting capital surplus to the U.S. Treasury as per the Bipartisan Budget Act of 2018, which reduced the surplus limit to $7.5 billion.

Key Information

• Balance Sheet Size: The Federal Reserve's balance sheet was $4,393 billion as of February 28, 2018.
• Capital Surplus: The surplus was reduced to $7.5 billion through a $2.5 billion remittance to the U.S. Treasury.
• Monetary Policy Implementation: The FOMC uses both permanent and temporary OMOs to manage the federal funds rate and the balance sheet.
• Liquidity Management: The Federal Reserve uses RRPs, TDF, and discount window lending to manage liquidity in the banking system.
• Transparency: The report provides detailed data on the balance sheet, including changes in assets, liabilities, and capital, and emphasizes the importance of transparency in monetary policy.

Conclusion

This quarterly report reflects the Federal Reserve's ongoing efforts to manage its balance sheet and monetary policy tools in a transparent and accountable manner. It outlines the FOMC's decision to raise the federal funds rate, the implementation of balance sheet normalization, and the operation of key liquidity facilities. The report also highlights the compliance with the Dodd-Frank Act and the financial status of the Federal Reserve System as of February 28, 2018.