The committee judged that reserve balances have declined to ample levels and decided to initiate purchases of shorter-term Treasury securities, mainly Treasury bills, for the sole purpose of maintaining an ample supply of reserves over time.

Reserve management purchases will amount to $40 billion in the first month and may remain elevated for a few months to alleviate expected near-term pressures in money markets.

Thereafter, we expect the size of reserve management purchases to decline, though the actual pace will depend on market conditions.