Live Updates > Live Update Details
2025-08-01 02:08:20
Metlife Investment Management strategist Shan Ahmed said in a report that the U.S. Treasury's plan to increase Treasury bond issuance to fill the deficit may force the Federal Reserve to increase its purchases of short-term government bonds. Federal Reserve officials have said that one of the central bank's goals is to match the structure of its investment portfolio with the structure of U.S. Treasury bonds circulating in the market. The current Fed's $4.2 trillion Treasury bond portfolio contains only $195 billion in Treasury bonds, accounting for about 5%. Ahmed wrote that "the Treasury's increased use of Treasury bonds will cause the Fed's holdings structure to deviate further from this goal."
