Fed quietly expands balance sheet with T-bill purchases, analysis shows

The Fed's quiet T-bill purchases signal a tactical shift in balance-sheet management, distinct from the QT narrative dominating headlines. This matters because it injects short-term liquidity without the duration risk of longer-dated buys, potentially easing funding pressures while masking net runoff. The $90 billion net expansion this year suggests a policy nuance that could complicate inflation control, making the split between bill purchases and runoff the key variable to watch. Whether this is a temporary liquidity backstop or a broader easing posture remains the open question for market participants tracking reserve levels and money market rates.