According to ChainCatcher, citing Jinshi, some analysts believe the Federal Reserve may decide at today's meeting to begin expanding its holdings of U.S. Treasury securities to ensure that bank reserves remain stable in line with economic growth. New York Fed President Williams stated that the Fed may soon be in a position to take such action, but restarting bond purchases is not a certainty.
The Federal Reserve may consider restarting reserve management-type bond purchases to stabilize the size of reserves.
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