April 24, 2019 / 4:16 PM / a month ago

U.S. Fed to buy $300 bln in Treasuries in FY 2020 - TD

NEW YORK, April 24 (Reuters) - The U.S. Federal Reserve is expected to purchase $300 billion in U.S. government securities on the open market in fiscal year 2020 after it ends the normalization of its balance sheet in September, TD Securities analysts said on Wednesday.

“Note that the Fed is not ending runoff because of downside risks to the economy or a threat to risk assets, but because they think that bank reserves have declined to the minimum level required to conduct monetary policy efficiently,” they wrote in a research note. (Reporting by Richard Leong)

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