Fed Winds Down RMPs with Modest T-Bill Purchase

The Federal Reserve is continuing to wind down its Reserve Management Purchases (RMPs) program, buying $2.12 billion in Treasury bills on August 26 as part of a deliberate reduction.

This operation was just one of the last before a planned pause, with no additional RMPs scheduled between mid-August and mid-September 2026.

The purchases are designed to keep enough reserves in the banking system so that short-term interest rates behave as desired by the Fed, which currently considers $3.1 trillion in reserves 'ample' for its purposes.