The New York Fed said it will not conduct reserve-management Treasury purchases
in the monthly cycle through Oct. 14, marking a second consecutive monthly
pause. The NY Fed still expects roughly $15.6 bln of reinvestment purchases in
the same period. The decision signals policymakers view bank reserve levels as
adequate; SOFR has traded at or below the IORB for most of the past month and
the Treasury trimmed T-bill supply ahead of the quarterly tax deadline. The Fed
said this does not represent a change in monetary policy or balance-sheet
strategy — reserve-management purchases are aimed at adjusting reserve levels
rather than QE, and MBS reinvestments will continue as part of balance-sheet
management.
