Fed Unveils November-December Treasury Purchase Plan

The Fed's decision to extend the suspension of reserve purchases into mid-December signals that balance-sheet normalization is being paced cautiously, even as it continues reinvesting MBS proceeds. For markets, the takeaway is less about the modest purchase size and more about the timing: the pause now runs through a period that includes a policy meeting and year-end funding dynamics. Whether the suspension is extended again beyond mid-December is the open question, and how money markets read the reinvestment schedule alongside reserve management will matter for short-term funding conditions.