---
title: "The scale of Treasury bills issued by the U.S. Department of the Treasury has surged, which may prompt the Federal Reserve to consider halting the balance sheet reduction"
description: "The surge in U.S. Treasury bill supply may prompt the Federal Reserve to consider ending its balance sheet reduction in the coming months. Powell hinted that the role of the Treasury cannot be ignored"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261383322.md"
published_at: "2025-10-16T07:21:02.000Z"
---

# The scale of Treasury bills issued by the U.S. Department of the Treasury has surged, which may prompt the Federal Reserve to consider halting the balance sheet reduction

> The surge in U.S. Treasury bill supply may prompt the Federal Reserve to consider ending its balance sheet reduction in the coming months. Powell hinted that the role of the Treasury cannot be ignored, as it needs to maintain a higher general account balance, which has been targeted at $850 billion over the past year and is expected to reach $900 billion in the quarterly report on November 3. The balance sheet reduction will decrease reserves in the banking system, which currently stand at about $3 trillion

On Tuesday, Powell hinted that the Federal Reserve might end its balance sheet reduction in the coming months, with one point left unspoken: the role played by the U.S. Treasury. The U.S. Treasury is continuously increasing the supply of Treasury bills, which means a need to maintain a higher general account balance. For most of the past year, the target balance for the U.S. Treasury's general account has been around $850 billion. Barclays strategist Samuel Earl stated that the growth of the Treasury's general account balance further depletes reserves, increasing the pressure on the Federal Reserve to stop the balance sheet reduction, ultimately necessitating an expansion of the balance sheet. (Bloomberg)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| California Greens Highlights New Study Linking Antioxidant Intake to Lower Female Infertility | A new study links higher antioxidant intake to lower female infertility, highlighting the importance of antioxidant-rich | [Link](https://longbridge.com/en/news/276061076.md) |
| 08:53 ETChiquita Brings Everyday Joy to Life in Third Year of Pop by Nature Creative Collaboration with Artist Jiaqi Wang | Chiquita launches the third year of its Pop by Nature campaign, collaborating with artist Jiaqi Wang. This initiative ai | [Link](https://longbridge.com/en/news/276060981.md) |
| Norwegian Cruise Line stock is rising. A big activist reportedly has taken a stake. | Norwegian Cruise Line's stock rose 6% in premarket trading after reports that activist investor Elliott has acquired ove | [Link](https://longbridge.com/en/news/276111879.md) |
| Blackstone-backed Liftoff Mobile files to withdraw US listing | Feb 17 (Reuters) - Blackstone-backed (BX.N) Liftoff Mobile has filed to withdraw its initial public offering plans in th | [Link](https://longbridge.com/en/news/276118530.md) |
| Short Interest in Schneider Electric SE (OTCMKTS:SBGSY) Drops By 16.8% | Schneider Electric SE (OTCMKTS:SBGSY) experienced a 16.8% decrease in short interest in January, with 197,858 shares sho | [Link](https://longbridge.com/en/news/276071356.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.