According to the Federal Reserve's latest announcement, the bank will extend the suspension of reserve purchases until mid-October. This means that treasury bonds will not be purchased for reserve management purposes for some time to come until policymakers are satisfied with the level of bank reserves in the financial system. Analysts believe that the suspension of interest rate hikes shows that the Federal Reserve has full confidence in the smooth operation of the financing market. The interest rate for guaranteed overnight financing remained at or below the reserve balance interest rate for most of the past month. The Ministry of Finance's repayment of treasury notes before the quarterly tax deadline also confirms this. This adjustment does not mean any shift in monetary policy or balance sheet strategy. Wall Street's Wells Fargo and Bank of America strategists expect that this month's reserve purchase plans will be suspended and resumed in mid-October to cope with possible pressure on the financing market after the Treasury starts to step up treasury bond issuance next month. Barclays Bank strategist Samuel Earle believes that purchases will rise back to 10 billion US dollars in October and reach 20 billion US dollars in November. However, Citigroup's strategists believe that the Federal Reserve will continue to suspend interest rate hikes for the rest of the year, and point out that bank reserve balances have fallen back to a “slightly sufficient level.”

According to the Federal Reserve's latest announcement, the bank will extend the suspension of reserve purchases until mid-October. This means that treasury bonds will not be purchased for reserve management purposes for some time to come until policymakers are satisfied with the level of bank reserves in the financial system. Analysts believe that the suspension of interest rate hikes shows that the Federal Reserve has full confidence in the smooth operation of the financing market. The interest rate for guaranteed overnight financing remained at or below the reserve balance interest rate for most of the past month. The Ministry of Finance's repayment of treasury notes before the quarterly tax deadline also confirms this. This adjustment does not mean any shift in monetary policy or balance sheet strategy. Wall Street's Wells Fargo and Bank of America strategists expect that this month's reserve purchase plans will be suspended and resumed in mid-October to cope with possible pressure on the financing market after the Treasury starts to step up treasury bond issuance next month. Barclays Bank strategist Samuel Earle believes that purchases will rise back to 10 billion US dollars in October and reach 20 billion US dollars in November. However, Citigroup's strategists believe that the Federal Reserve will continue to suspend interest rate hikes for the rest of the year, and point out that bank reserve balances have fallen back to a “slightly sufficient level.”