Fed balance sheet hits another record size

The purchase was part of its $600 billion program, dubbed QE2, aimed at stimulating investment and economic activity.

The balance sheet -- a broad gauge of Fed lending to the financial system -- swelled to $2.841 trillion in the week ended June 22 from $2.811 trillion the prior week.

The central bank's holding of U.S. government securities grew to $1.602 trillion on Wednesday from last week's $1.576 trillion total.

The central bank has said it will complete QE2 at the end of June, but will continue to reinvest proceeds from agency bonds and mortgage-backed securities as they mature.

The Fed's ownership of mortgage bonds guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association (Ginnie Mae) eased to $914.33 billion from $914.51 billion the previous week.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank were steady at $118.37 billion.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $20 million a day in the week ended Wednesday, compared with an average daily rate of $24 million last week.

(Reporting by Emily Flitter; Editing by Chizu Nomiyama)