The Federal Reserve released Thursday the factors affecting reserve balances of Depository Institutions. Total assets decreased this week by $125,540 billion to $2.14 trillion. As can be seen from the chart, the Fed’s total assets rose rather steadily through fiscal ’07, consisting mainly of U.S. Treasuries. In fiscal ’08 however, many of these securities were replaced by other assets, such as those in the Term Auction Facility, Repos and other assets.
Total assets started spiking last September when the credit crisis began.