Williams says FOMC ended balance sheet runoff December 1 and began reserve management purchases in December 2025.
“First, having determined that reserve balances were approaching the ample range, at its October 2025 meeting it decided to conclude the runoff of aggregate SOMA securities holdings effective December 1; and second, when it judged that reserves declined to the ample range in December, it instructed the Desk to begin reserve management purchases (RMPs) to maintain reserves within that range.”
Williams says monthly RMP pace can likely be significantly reduced after April.
“But, as the Desk said in its statement in December, the monthly pace can likely be significantly reduced after April.”
Williams says the Desk is conducting reserve management purchases at $40 billion monthly.
“As you know, so far, the Desk has been conducting reserve management purchases at a monthly pace of $40 billion.”
Williams says monthly RMP pace will likely be adjusted soon after April tax season.
“An adjustment to our monthly purchase pace is likely to happen soon. Beyond April, the TGA is likely to decline as the Treasury uses the funds it receives via tax inflows to pay its obligations.”