Fed Extends Pause on Treasury Bill Purchases

The Federal Reserve has decided to extend its pause on buying Treasury bills for reserve management purposes until October, indicating that policymakers are comfortable with the level of bank reserves in the financial system.

This decision marks the second straight month without purchases, a sign that the Fed is confident in the smooth functioning of funding markets.

The New York Fed's open markets desk plans to buy around $15.6 billion in reinvestment purchases over the period ending October 14, according to its website.