May 17 (Reuters) - The U.S. Federal Reserve's balance sheet shrank in the latest week with reduced holdings of Treasuries and agency debt, Fed data released on Thursday showed.
The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.834 trillion on May 16, down from $2.847 trillion the previous week.
The Fed's holdings of Treasuries totaled $1.657 trillion as of Wednesday, versus $1.666 trillion the previous week.
The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $10 million a day during the week from an average of $14 million a day in the prior week.
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