Fed balance sheet hits new high

The US Federal Reserve’s balance sheet soared to a new record of almost $2.8 trillion (£1.7 trillion) in the past week as it pushed ahead with its QE2 bond-buying programme, its data showed yesterday. The balance sheet data, a sign of the level of its lending to the financial system, was up from $2.74 trillion the week previously. Overnight loans to banks jumped to $11m per day in the week to Wednesday, up from just $3m per day the prior week. The Fed expects to continue the quantitative easing until June to shore up the US economy.