Fed Pauses Reverse Repurchase Agreement Program for Second Straight Month

The Federal Reserve has paused its Reverse Repurchase Agreement (RMP) program for the second consecutive month, reflecting ample bank reserves and stable money-market conditions.

The New York Fed's Open Market Trading Desk will not conduct any Treasury securities purchases for reserve management purposes during the next monthly period ending October 14. However, they will continue to carry out approximately $15.6 billion in reinvestment bond-buying operations.

Bank of America's reserve balance stood at $3.04 trillion as of September 9, higher than the year-to-date average of $3.01 trillion and up from $2.85 trillion at the end of last year.