Fed to begin Treasury bond purchases of about $60 billion per month


In its recently published statement regarding the monetary policy implementation, the Federal Reserve announced that it will begin the United States (US) Treasury bond purchases of about $60 billion per month to maintain over time ample reserve balances.

The US Dollar Index largely ignored these comments and was last seen down 0.4% on the day at 98.29. Below are some additional takeaways, per Reuters.

"Purchases will be in addition to the ongoing purchases related to run off of holdings of mortgage-backed securities."

"Purchases to continue at least until second quarter of next year."

"Will conduct overnight repo operations at least through January to assure ample reserves even during spikes in demand."

"Actions are purely technical measures and do not represent a change in the stance of monetary policy."

"Open to adjusting the plan as needed."

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