Fed to sustain $10B monthly Treasury bill purchases through August 2026

The Federal Reserve’s decision to sustain its $10 billion monthly Treasury bill purchase and additional reinvestment activities until August 13, 2026, was confirmed on July 13. This strategy aims to ensure ample bank reserves and smooth money market operations amid anticipated liquidity drains. The reserve management purchasing (RMP) program, initiated in December 2025, functions as a technical balance sheet adjustment, distinct from the Fed’s broader monetary policy stance. This move highlights the Fed’s focus on stabilizing short-term funding costs, with current 3-month Treasury bill rates at 3.69%, down from 4.26% a year ago.

Market participants are closely observing the impact of the Fed’s continued liquidity support on gold prices. The decision appears consistent with expectations of maintaining liquidity conditions, which could influence gold markets. Current predictions for whether gold will reach certain high price targets in July show varied sentiment, reflecting the complex interplay of factors influencing these markets.

Key Takeaways

• The Federal Reserve’s continuation of its Treasury bill purchase program suggests the maintenance of ample liquidity, which appears consistent with market stability goals.
• Current market pricing indicates mixed expectations on gold reaching high price levels in July 2026, with some scenarios showing increased YES probabilities.
• The decision aligns with the Fed’s technical balance sheet adjustments rather than a shift in monetary policy, focusing on controlling short-term funding costs.

What to Watch

Market observers will be monitoring the Fed’s actions closely, particularly any statements from Fed Chair Jerome Powell or other officials that may indicate changes in policy direction. Additionally, shifts in gold price markets could provide insights into participant expectations of economic conditions and monetary policy impacts. The likelihood of gold reaching specific price targets in July will depend on broader economic indicators and geopolitical developments.

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Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.