#美联储联邦公开市场委员会决议 The Federal Reserve recently took a significant step, announcing that starting December 12, it will inject $40 billion into the treasury market each month to replenish the banking system's reserves. In simple terms, the Fed has realized that reserves are running tight.

Why the urgency? Because reserve balances have fallen to the so-called "ample" warning line. Once this level loosens, liquidity across the entire financial market could be pressured. The Fed explicitly stated in its announcement that it will continue purchasing short-term government bonds as needed to ensure reserves remain sufficiently ample.

In fact, earlier this month, the Fed already hit the pause button—stopping its previous balance sheet reduction plan. Why? Because signals indicated that bank reserves were becoming insufficient.

Federal Reserve Chair Jerome Powell's remarks on Wednesday were quite interesting. He said that short-term interest rates are rising "a bit faster than expected," implying that market liquidity is somewhat tight. During the press conference, he was more straightforward, stating that considering the continued tightening of market rates relative to the administered rate, as well as other reserve market indicators, the committee confirmed that reserves have indeed fallen to the "critical point" of being "ample."

The New York Fed’s Open Market Operations Department also provided expectations: in the coming months, to offset a potentially large increase in non-reserve liabilities in April, reserve management will maintain high levels of purchases. However, once the peak passes, the pace of buying may significantly slow down.