Permanent Open Market Operations
Purchases or sales of securities on an outright basis that add or drain reserves and change the size or the composition of the System Open Market Account (SOMA) portfolio are among the tools used by the Federal Reserve to implement monetary policy.
Treasury
Purchases or sales of Treasury securities on an outright basis have been used historically to manage the supply of reserves in the banking system. Traditionally, purchases of Treasury securities for the SOMA were conducted to offset factors that permanently drain balances from the banking system, including U.S. currency in circulation, among other factors. These actions would be taken to maintain conditions in the market for bank reserves consistent with the federal funds target rate set by the Federal Open Market Committee (FOMC). In recent years, the FOMC has directed the Desk to change the size or the composition of the SOMA's Treasury portfolio in order to influence longer-term interest rates and support broader financial conditions.
Operations »
Cumulative Purchases of Longer-term Treasury Securities (Jan. 2013 – Oct. 2014)
FAQs: Agency MBS Reinvestments and Treasury Rollovers »
Open Market Operations: Transaction Data »
Agency MBS
The FOMC directed the Desk to reinvest principal payments from the Federal Reserve’s holdings of agency debt and agency mortgage-backed securities (MBS) in agency MBS. This policy, by keeping the Committee’s holdings of agency MBS at sizable levels, should help maintain accommodative financial conditions.
Operations »
Tentative Outright Agency MBS Operation Schedule »
Agency MBS Transaction Summary »
Agency MBS Historical Operational Results and Planned Purchase Amounts »
FAQs: Agency MBS Reinvestments and Treasury Rollovers »
FAQs: Agency MBS CUSIP Aggregation »
Tools
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