Fed to Start Buying $60 Billion of Treasury Bills Per Month

The Federal Reserve plans to rebuild its balance sheet by purchasing Treasury bills to increase reserves, aiming for a regime of ample reserves. This move is intended to stabilize interest rates and reduce volatility in the repo market. The Fed's actions are not considered quantitative easing (QE) as they target the short end of the curve. The balance sheet is expected to grow to around $4 trillion, with ongoing adjustments as the economy and currency circulation expand.

What actions did Chairman Jay Powell indicate the Fed would take regarding Treasury bills?

What is the significance of the repo spike mentioned in the text?

How does the Fed plan to manage its balance sheet in the coming years?

What are the expected effects of the Fed's actions on interest rates?

What is the projected size of the Fed's balance sheet in the near future?