US Federal Reserve's balance sheet shrinks for first time since February

The Fed's balance sheet fell to $7.14 trillion on June 17 from $7.22 trillion a week earlier

The Federal Reserve's assets shrank this week for the first time since February, reflecting a sharp drop in currency swaps with foreign central banks and a continued slackening in demand for other emergency credit facilities.

The Fed's balance sheet - composed of assets ranging from US Treasury bonds and mortgage-backed securities to loans to banks and state governments - fell to $7.14 trillion on June 17 from $7.22 trillion a week earlier, Fed data released on Thursday showed.

It was the first decline since the end of February, just before the Fed slashed interest rates to near zero and kicked a bevy