Fed Stands Firm Against Pressure to Boost Treasury Buying

The Federal Reserve is resisting pressure from the White House and Wall Street to boost Treasury bond purchases, as it aims to avoid the perception of panicking or bailing out specific entities, despite volatile Treasury market conditions, opting for a measured regulatory process that could take months.

• The Federal Reserve is resisting pressure to encourage banks to buy more Treasury bonds, despite calls from the White House and Wall Street.
• The Fed is wary of being seen as panicking or bailing out the administration or hedge funds that have been heavy sellers of Treasuries.
• While the Treasury market is volatile, the Fed plans to follow the normal regulatory process for tweaking capital rules, which could take months.