Federal Reserve’s $20 Billion Treasury Purchase:
A Return to QE-Era Scale
On May 5, 2025,
the Federal Reserve made a significant market move by purchasing over $20 billion worth of 3-year Treasury notes, marking the largest single-day purchase operation since the quantitative easing (QE) program in 2021. This substantial intervention has drawn attention from market participants and economists as it potentially signals a shift in the Fed’s monetary policy approach.