New Fed Chair Kevin Warsh announces $10 billion monthly Treasury purchases to maintain ample banking system reserves.
The Federal Reserve will purchase $10 billion in Treasuries each month to ensure the banking system retains ample reserves. The move was announced by new Chair Kevin Warsh during his first FOMC meeting and press conference last Thursday.
Warsh reaffirmed the central bank’s preference for balance sheet expansion, signaling continuity in monetary policy. The decision follows prior Fed efforts to stabilize liquidity and support market functioning.
No immediate market reaction was detailed, but the policy shift underscores the Fed’s ongoing focus on maintaining financial system stability.