Fed May Resume Debt Purchases Soon — Markets Watching Closely
Some analysts expect the Fed will begin “reserve-management” purchases in early 2026 — potentially buying Treasury bills to stabilize short-term funding markets.
The shift comes after the Fed ended its balance-sheet reduction (quantitative tightening), reversing the previous trend of shrinking its holdings.
The goal of the purchases is reportedly to address reserve shortages and keep money-market liquidity stable — not necessarily as a broad “quantitative easing” stimulus.
For investors, renewed liquidity injections could mean conditions remain favorable for risk assets (equities, bonds, perhaps crypto) — though outcomes remain uncertain.
Not financial advice — always do your own research before making any investment decisions.#Fed
