Fed Pauses Treasury Bill Purchases After $215 Billion Buying Spree

The Federal Reserve has paused its program of Treasury bill purchases after buying approximately $215 billion in bills since December, according to Coin Bureau. The central bank still plans to purchase around $15.6 billion in additional bills through October 14.

This move is aimed at supporting bank reserves and replacing mortgage-backed securities that are rolling off the Fed's balance sheet. As of September 23, the central bank held about $4.56 trillion in U.S. Treasury securities and roughly $1.91 trillion in mortgage-backed securities.

The Fed has been managing its balance sheet while maintaining an ample level of reserves. Recent data show that Treasury bill holdings have remained broadly elevated, with the Fed reporting $553.8 billion in bill holdings on September 16, compared to $548.4 billion on September 2.