Federal Reserve Halts T-Bill Purchases for One Month Starting August 14

According to the Federal Reserve Bank of New York, the U.S. Federal Reserve announced on August 13 that it will halt Treasury bill purchases under its reserve management program (RMP) for one month beginning August 14. The RMP purchase size will drop to zero from the previous $10 billion, marking the first complete suspension since the program began last December.

The central bank will continue separate reinvestment Treasury bill purchases of approximately $17 billion during the same period. FRBNY officials previously signaled that RMP size can be flexibly adjusted or temporarily suspended based on money market conditions.