The Federal Reserves commercial paper holdings fell by more than $100 billion last week, with the balance sheet standing at $1.93 trillion, in a sign that the capital markets are returning to normal and that companies may be returning to the private sector for short-term financing.
In tandem, commercial banks increased their borrowing through the discount window by more than $5 billion to $68.29 billion.
So far, the Fed has provided $15.96 billion in credit for a facility to support money market funds and asset-backed commercial paper.