How Reserve Management Purchases Have Eased Money Market Rates

The Fed initiated Reserve Management Purchases after halting Quantitative Tightening in December 2025, expanding SOMA to $6.6 trillion and increasing Treasury bill holdings to a record $382 billion to ease money market tightness. The RMPs concentrate on short-term T-bill purchases, a dovish liquidity injection likely to relieve money-market strains and put downward pressure on short-term Treasury yields.

Analysis

The Fed initiated Reserve Management Purchases after halting Quantitative Tightening in December 2025, expanding SOMA to $6.6 trillion and increasing Treasury bill holdings to a record $382 billion to ease money market tightness. The RMPs concentrate on short-term T-bill purchases, a dovish liquidity injection likely to relieve money-market strains and put downward pressure on short-term Treasury yields.