The Open Market Trading Desk at the Federal Reserve Bank of New York published its annual report summarizing open market operations conducted by the Desk for the System Open Market Account (SOMA) and a review of Federal Reserve balance sheet developments in 2024.
Total assets of the Federal Reserve decreased by $766.8 billion during the year to a level of $7.07 trillion, driven largely by runoff of the SOMA portfolio and, to a lesser degree, decreases in credit extensions related to the banking strains that occurred in 2023. Total lending under the primary credit program and the Bank Term Funding Program (BTFP) decreased to less than $20 billion at yearend, compared to peak levels of $344 billion in early 2023. Federal Reserve assets as a percentage of nominal GDP ended 2024 at 24%, compared to 28% in 2023.
Global US dollar funding markets remained stable throughout 2024, and the average usage of US dollar central bank liquidity swap lines remained at low levels. Usage of the standing overnight repurchase agreement facility for foreign and international monetary authorities (commonly referred to as the FIMA repo facility) was minimal throughout 2024. The Desk did not conduct any foreign exchange intervention activity during 2024 and continued to manage the SOMA foreign currency reserve holdings in line with the portfolio’s investment objectives of liquidity, safety, and return.
Usage of the overnight reverse repo (ON RRP) facility continued to decline during 2024, as money market funds (MMFs) shifted toward other, more attractive investments. Daily ON RRP usage ranged between a high of $719.9 billion in January 2024 and a low of $98.4 billion during December. Over the year, MMFs and government-sponsored enterprises accounted for nearly 92% and 8% of the daily average participation in the ON RRP, respectively.
The Treasury General Account (TGA) declined by $46.7 billion from year-end 2023 to a level of $721.9 billion. During the year, the TGA generally fluctuated between about $650 billion and $950 billion, briefly peaking at around $960 billion during April tax season.
The report also presents New York Fed staff projections of SOMA domestic securities holdings, reserve balances, and associated net income. The projections are based on assumptions drawn from FOMC communications and the May 2025 Survey of Market Expectations.