Frequently our posts become a diary of sorts so we may look back at Economic and Market Related events in the future – todays post started out as informative, but has morphed into a time stamped diary as well… apologies if this confuses, but it is an interesting flip flop of events by the FOMC and now time stamped by us !
QT Ends – Tailwind
On December 10th we noted here in our Post the FOMC quietly completed QT aka the push of money back into the system from their lock down build up… The completion of this, is a pseudo stimulus via the halting of a headwind!
FOMC lowers Short term Rates – Tailwind
Just a couple of days later, the FOMC lowered short term rates, – another stimulus action!
Enter RMP – Reserve Management Purchases
Think of the FOMC reserve pool as the Feds Emergency fund… The newly introduced term, RMP (Reserve Management Purchase) is the fill up of this pool.
A $40 billion month buy for now – ANOTHER stimulus like moment AND a tail wind to lower rates once again!
Statement Regarding Reserve Management Purchases Operations
“December 10, 2025
On December 10, 2025, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to increase System Open Market Account (SOMA) securities holdings to maintain an ample level of reserves through purchases in the secondary market of Treasury bills (or, if needed, of Treasury securities with remaining maturities of 3 years or less). These reserve management purchases (RMPs) will be sized to accommodate projected trend growth in the demand for Federal Reserve liabilities as well as seasonal fluctuations, such as those driven by tax payment dates.
Monthly amounts of RMPs will be announced on or around the ninth business day of each month alongside a tentative schedule of purchase operations for the subsequent approximately thirty days. The Desk plans to release the first schedule on December 11, 2025, with a total amount of RMPs of approximately $40 billion in Treasury bills; purchases will start on December 12, 2025. The Desk anticipates that the pace of RMPs will remain elevated for a few months to offset expected large increases in non-reserve liabilities in April. After that, the pace of total purchases will likely be significantly reduced in line with expected seasonal patterns in Federal Reserve liabilities. Purchase amounts will be adjusted as appropriate based on the outlook for reserve supply and market conditions.
The Desk was also directed in October to reinvest all principal payments from the Federal Reserve’s holdings of agency securities into Treasury bills via secondary market purchases. The monthly schedule of planned purchases will include RMPs as well as these purchases.”
Sorry for the heavy…. this is what a one of our internal notes each day looks like … so we shared and will also tag as Advanced Analysis!
Have a Great “RMP analysis” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
