The central bank appears to have sold about $160 million of its corporate debt holdings since Monday.
The Federal Reserve’s balance sheet topped $8 trillion for the first time, weekly data published by the US central bank on its holdings showed on Thursday.
The report also showed the Fed sold about $160 million of its corporate debt holdings since Monday, following an announcement it would open up about $14 billion of its corporate credit portfolio. As a first step, the central bank on Monday began selling its stake in 16 bond exchange-traded funds.
The Fed’s credit facility was one of several emergency measures introduced last spring to shore up financial markets badly shaken by the rapid spread of the coronavirus pandemic and disruption in the economy. While the Fed’s backstop restored liquidity to the credit market, the facility was ultimately little used and the sale of its holdings is not expected to have a serious impact on the market.