The numbers: The Federal Reserve’s balance sheet increased to $7.09 trillion for the week ending in May 20, up from $6.98 trillion in the previous week, the central bank said Thursday.
What happened: The Fed’s holdings in its corporate credit facility grew by $1.50 billion to $1.80 billion, after the central bank announced last Tuesday it would buy corporate bond exchange-traded funds.
The central bank’s support has driven up prices for these ETFs, especially for those focusing on investment-grade issuers.
Mortgage-bond purchases outpaced the Fed’s buying of U.S. government paper. Holdings of agency mortgage-backed securities rose by $79 billion to $1.86 trillion, while holdings of Treasurys increased by a more modest