NY Fed to gradually cut size of Treasury purchase operations

NEW YORK (Reuters) -The New York Federal Reserve's trading desk will gradually reduce the size and frequency of its Treasury purchase operations, the New York Fed said on Wednesday.

The downsizing of the operations will begin with the two-week schedule to be released on August 19, the New York Fed said in a statement.

The New York Fed's statement came after the Federal Reserve said it will extend the duration but not the dollar amount of its $300 billion program to buy long-term government securities to promote a smooth transition in markets.

The program will now expire at the end of October. So far, the Fed has bought 84 percent of the $300 billion it said it would buy.

(Reporting by Kristina Cooke; Editing by Dan Grebler)