Highlights
For factors affecting reserve balances at depository institutions, Reserve Bank credit declined $5.4 billion for the week ended November 4 and followed a drop of $17.4 billion the prior week. The Fed likely has hit a peak in recent weeks for balance sheet expansion but there still are some differences between factors affecting reserve balances at depository institutions versus the overall balance sheet. Total assets of all Federal Reserve Banks rose $3.5 billion in the latest week after falling $39.6 billion for the week ended October 28. Total assets include holdings by the Fed for non-depository institutions.

The drop in Reserve Bank credit was led by a $16.6 billion decrease in net portfolio holdings of the Commercial Paper Funding Facility. The biggest offset in the other direction was a $5.5 billion gain in securities held outright of which $5.4 billion was federal agency debt and $1.7 billion in longer-term Treasury securities. Mortgage-backed securities slipped $1.6 billion.

For total assets, net portfolio holdings of the Commercial Paper Funding Facility declined only $4.5 billion, explaining most of the difference between factors affecting reserve balances at depository institutions and total assets.