Based on the news release from the Federal Reserve, the key points are: The Federal Reserve is confident that it can keep inflation under 2% and believes the risks to employment and inflation are balanced. The Federal Reserve will continue to reduce its balance sheet. Regarding the economy, the situation is still uncertain and requires further observation. Two key points: 1. The Federal Reserve holds U.S. Treasuries that will mature. For the principal of these maturing Treasuries, the Federal Reserve will roll them over by auctioning them off to reinvest the funds into new Treasuries. However, there is a cap of $25 billion per month on the amount that can be reinvested. Any amount above $25 billion will be auctioned off and not reinvested. 2. If the principal of maturing coupon Treasuries is less than $25 billion per month, the Federal Reserve will choose to redeem these Treasuries. Additionally, the Federal Reserve may also redeem some Treasury bills to ensure the total principal redemption reaches the $25 billion monthly cap. The Federal Reserve also receives principal payments from its holdings of agency debt and mortgage-backed securities (MBS). If the total principal received exceeds $35 billion, the excess will be reinvested into Treasuries. This means the funds will not leave the market but will continue to be invested in the Treasury market. These Treasury reinvestments will roughly match the maturity structure of other Treasuries in the market to avoid a significant impact. This may not be considered as "quantitative easing" because the Federal Reserve is simply rolling over maturing Treasuries and reinvesting principal payments, maintaining the existing asset size rather than injecting new liquidity. This is a neutral or "passive" liquidity management measure to maintain the current level of market funds, not a typical "quantitative easing" with more aggressive measures to expand the balance sheet or lower benchmark rates.