Federal Reserve's Short-Term Treasury Bond Purchase Plan Reveals: $220 Billion Scale in the Coming Year

NFTArchaeologis · 2026-01-04T18:05:10+00:00

The Federal Reserve plans to purchase $220 billion in short-term government bonds over the next 12 months to address the challenge of declining liquidity in the financial system. The plan to increase holdings by approximately $40 billion per month has been initiated, with two similar bond purchase operations scheduled for January, aiming to stabilize market liquidity and prevent a crisis.

NFTArchaeologis

2026-01-04 18:05:10

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According to the latest market research data, the Federal Reserve’s short-term Treasury bond purchases over the next 12 months will reach $220 billion. Behind this massive bond-buying plan reflects the current financial system’s urgent need for liquidity.

New Challenges Facing Financial System Reserves

The core issue facing the Federal Reserve is that bank reserve levels have gradually fallen to a “moderately ample” critical point. To maintain the stable operation of the financial system, the Federal Reserve has decided to initiate targeted market operations by increasing holdings of short-term Treasury bonds to inject sufficient liquidity into the market.

Bond Purchase Schedule and Specific Arrangements

According to the Federal Reserve’s policy meeting decision in December, this bond-buying action has officially commenced. The specific plan indicates that the Federal Reserve will increase holdings of approximately $40 billion in short-term Treasury bonds each month. Notably, the Fed will also arrange two additional similar-scale bond purchases in January to ensure the continued stability of liquidity supply.

This series of measures clearly demonstrates that the Federal Reserve is injecting the necessary “blood” into the financial system through precise market regulation methods to prevent liquidity crises.

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