Fed's Powell Says Treasury Purchases May Remain Elevated

The committee judged that reserve balances have declined to ample levels. Accordingly, at today's meeting, the committee decided to initiate purchases of shorter term Treasury securities, mainly Treasury bills, for the sole purpose of maintaining an ample supply of reserves over time. Such increases in our securities holdings ensure that the federal funds rate remains within its target range and are necessary because the growth of the economy leads to rising demand over time for our liabilities, including c ...