The US Federal Reserve announced today a plan to purchase short-term treasury bills worth $60 billion a month to ease funding pressures on the US banking system.
The bank added that the plan will continue until the second quarter of 2020, to ensure an ample supply of reserves to control over the level of the federal funds rate and to ease recent liquidity restrictions.
The Fed stressed that it will continue the repo operations (repurchasing short-term bills) to increase reserves in banks until at least January.
During the recent weeks, the Fed has been injecting billions of dollars of liquidity through repo operations by purchasing bonds and mortgage securities from banks and hedge funds.