Under Powell, Federal Reserve Plans for More Treasury Purchases to Manage Lending Rates

Posted on 10/11/2019

The Federal Reserve disclosed that is will continue its overnight funding operations through at least January 2020 and will purchase U.S. Treasury bills through the second quarter of 2020. The Treasury bill purchases will be US$ 60 billion per month. The T-bill purchases will involve maturities of between five and 52 weeks.

Federal Reserve Chairman Jerome Powell revealed that the central bank will be expanding the size of its US$ 4 trillion balance sheet through further short-term T-bill purchases.

Earlier, the Federal Reserve indicated it would end the repo operation at November 4, 2019.

Keywords: Federal Reserve System.