The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
Statement Regarding System Open Market Account Activity
August 20, 2007
On Thursday, August 23, 2007, the Federal Reserve’s System Open Market Account (“SOMA”) will redeem $5 billion of Treasury bill holdings. This action is designed to give the Federal Reserve Open Market Trading Desk (the “Desk”) greater flexibility in the day-to-day management of reserve levels to offset factors that may add reserves to the banking system, such as additional discount window borrowings.
To achieve the $5 billion redemption, SOMA will purchase $7,126,019,000 of the 2/21/08 26-week Treasury bill (912795C82), $5,239,824,000 of the 11/23/07 13-week Treasury bill (912795B34), and will not participate in the 9/20/07 4-week Treasury bill (912795A27) auction. As with all SOMA purchases in the Treasury auctions, the amounts purchased are “add-ons” to the amounts publicly announced and issued by Treasury.
The Desk will continue to evaluate the need for the use of other tools to add flexibility to its open market operations. These may include further Treasury bill redemptions, reverse repurchase agreements, and Treasury bill sales.