The Federal Reserve said Monday it will not conduct reserve management purchases (RMPs) of Treasury bills for the monthly period ending Oct. 14, marking the second consecutive month of a pause. The New York Fed's open markets desk still plans about $15.6 billion in reinvestment purchases. The hiatus signals policymakers are comfortable with current bank reserve levels, which stood at $3.04 trillion as of Sept. 9, up from $2.85 trillion at year-end 2024. The Secured Overnight Financing Rate has traded at or below the interest on reserve balances rate (IORB) for most of the past month, and Treasury bill paydowns ahead of the quarterly tax deadline have supported funding conditions.

The pause does not indicate a shift in monetary policy or balance-sheet strategy. Strategists from Wells Fargo and Bank of America expected the hiatus before a potential resumption in mid-October when Treasury ramps up bill issuance. Barclays Plc strategist Samuel Earl forecasts purchases rising to $10 billion in October and $20 billion in November, while Citigroup Inc. strategists see the Fed remaining on pause for the rest of the year, noting reserves have returned to a "lightly abundant regime."

The Fed ended quantitative tightening in late 2025 and began buying short-term Treasuries to add reserves. Then-Chair Jerome Powell described the initial $40 billion monthly pace as "front-loading" ahead of the April tax season. Purchases were cut sharply to $25 billion in April, $10 billion in May, and halted in August. The Federal Open Market Committee updated its policy implementation note in June to allow temporary pauses. New York Fed's Roberto Perli reiterated in July that RMPs are not on a preset course and will be adjusted to keep reserves ample.