Christian Cabanilla, Natalie Leonard, and Leonard Wei

From 2022 until December 2025, the Federal Reserve reduced its securities holdings by over $2 trillion, guided by the plans announced by the Federal Open Market Committee (FOMC) in May 2022. The FOMC ended this runoff when it decided reserves had reached an ample range. To maintain adequate reserve levels, the FOMC directed the Open Market Trading Desk at the New York Fed (the Desk) to increase System Open Market Account (SOMA) securities holdings through ongoing reserve management purchases (RMPs).

Anne Chen, Ellen Correia Golay, Julie Hennighausen, and Agata Zhang

The Treasury Market Practices Group (TMPG) recently released a consultative note highlighting theoretical implications for the agency mortgage-backed securities (MBS) market from potential changes to the ownership structure of Fannie Mae and Freddie Mac, which are government-sponsored enterprises (GSEs).

Ricardo Correa, Linda S. Goldberg, Juan Londono, and Fabiola Ravazzolo

The fourth International Roles of the U.S. Dollar Conference, held in September, brought together researchers, practitioners, and policymakers to examine the factors sustaining the dollar’s international roles, the evolving global fund allocation to U.S. safe assets, and the liquidity of these assets in a time of geopolitical and technological changes.

Dan Reichgott, Fabiola Ravazzolo, and Lisa Chung

The foreign exchange (FX) market is the largest financial market by trading volume in the world, with over $9 trillion in average daily turnover, according to the latest Bank for International Settlements data. Given the market’s important role in supporting international trade, investment, and finance, it is crucial to understand and analyze developments in it to ensure it functions effectively and resiliently.