he Federal Reserve’s move to expand its balance sheet again by buying Treasury bills is expected to ease money-market strains, calming investor worries that years of bond-portfolio runoff had drained too much liquidity from the financial system.
The Fed said on Wednesday it would start buying short-dated government bonds to help manage market liquidity levels to ensure the central bank retains firm control over its interest rate target system. The purchases will begin on December 12 with an initial round that will total around $40 billion in Treasury bills, it said.
