The Federal Reserve significantly reduces the scale of Treasury purchases again
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Jinse Finance reported that on May 14, the Federal Reserve announced it will purchase approximately $1 billion worth of Treasury bills this period. This move reflects a further slowdown in the program aimed at lowering short-term financing costs by supplementing financial system reserves. According to the New York Fed’s official website, its open market trading desk plans to conduct the above-mentioned Reserve Management Purchases (RMP) during the monthly period ending June 11, and to carry out approximately $1.63 billion in reinvestment purchases during the same period. The Federal Reserve is expected to abruptly stop reducing its balance sheet—known as quantitative tightening—by the end of 2025 and instead reinject liquidity into the financial system through the purchase of Treasury bills maturing within one year. (Dongxin News Agency)
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