The Federal Reserve is adding $10 billion in Treasury bills to its balance sheet, the latest move in a reserve management program that has been steadily shrinking since its launch late last year. What started as a $40 billion monthly operation in December 2025 has now been dialed down to a quarter of that pace.
The mechanics of the purchase
The New York Fed’s Open Market Trading Desk plans to conduct roughly $10 billion in Reserve Management Purchases (RMPs) of Treasury bills through a cycle ending June 11, 2026. That’s in addition to about $16.3 billion in reinvestment purchases, where proceeds from maturing agency securities get rolled into bills.
The purchases align with the Federal Open Market Committee’s operating policy directive from December 10, 2025, which established the framework for keeping bank reserves at what the Fed considers “ample” levels.
The program kicked off at $40 billion per month in December 2025. By April 2026, the pace dropped to $25 billion. Now it’s sitting at $10 billion. Each reduction reflects what the Fed sees as improving reserve conditions.
