Fed Stays Hands-Off on T-Bill Purchases Amid Sluggish Funding

The Federal Reserve has announced that it won't be buying Treasury bills for reserve management purposes in August and September. This decision suggests that policymakers are comfortable with the current level of bank reserves in the financial system.

The New York Fed's open markets desk, which is responsible for conducting reserve management purchases, will not be making any such purchases over the monthly period ending September 14. However, it will still buy around $17 billion in reinvestment purchases during this time, according to its website.