Fed Halts Two-Month Consecutive Treasury Purchases for Reserve Management

The Federal Reserve has decided not to conduct reserve management treasury purchases for the second consecutive month. The New York Fed announced that from September 15 to October 14, no reserve management purchases will be made, while approximately $15.6 billion (about 20.934 trillion won) in principal reinvestment purchases of Treasury securities will proceed. This follows a similar period from August 14 to September 14 when no reserve management purchases were conducted. Reserve management purchases are operations aimed at maintaining sufficient reserves in the financial market by purchasing short-term Treasuries and other instruments. The New York Fed explained that purchase volumes are adjusted monthly based on reserve demand and supply, as well as conditions in the short-term financial markets.