NEW YORK (Reuters) - The Federal Reserve's balance sheet grew in the latest week with reduced holdings of U.S. government debt, agency debt and agency mortgage-backed securities, Fed data released on Thursday showed.
The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.899 trillion on January 2, compared with $2.889 trillion on December 26.
The Fed's holdings of Treasuries totaled $1.666 trillion as of Wednesday from $1.657 trillion the previous week.
The Fed's ownership of mortgage bonds guaranteed by Fannie Mae
The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system held steady at $76.78 billion.
The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $28 million a day during the week compared with a $17 million a day average rate the prior week.
(Reporting By Steven C. Johnson; Editing by Chizu Nomiyama)
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