Economics

Fed to Slow Pace of Treasury Buying Again Under Its QE Program

‘A healthy and encouraging sign,’ according to Academy’s Tchir
Treasury futures ease from session highs after announcement

The U.S. Treasury building stands past fencing in Washington, D.C. on April 1.Photographer: Andrew Harrer/Bloomberg

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By Elizabeth Stanton, Liz Capo McCormick, and Vivien Lou Chen

April 9, 2020 at 6:17 PM UTC

Updated on

April 9, 2020 at 6:50 PM UTC

This article is for subscribers only.

The Federal Reserve further dialed back the pace at which it plans to buy Treasuries under its unlimited quantitative easing program even as it announced an additional swath of support measures for smaller businesses as well as local and state governments.

The U.S. central bank, which has been aggressively purchasing Treasuries in a bid to offset the economic and market fallout from the coronavirus pandemic, on Thursday said that it would reduce the daily pace of buying to around $30 billion from $50 billion, starting April 13. The Federal Reserve Bank of New York outlined its Treasury-buying plans for the coming week on its website.