Fed’s Perli: Short-Term Treasury Purchases Depend on Market Conditions

The key signal is that the Fed's short-term Treasury purchases are framed as a reserve-management tool, not a policy stance, which keeps the balance-sheet runoff debate separate from rate expectations. For funding markets, the emphasis on an ample reserve range matters more than any single operation size. The open question is how the market absorbs the next large net short-term issuance and whether reserve levels stay comfortable enough to avoid renewed money-market pressure.