Majestic view of the U.S. Supreme Court building at dusk, with grand columns and a marble facade. A dramatic sky creates a serene and authoritative tone.

The Federal Reserve has stepped back into the short-term Treasury market to support system liquidity, even as it continues to let mortgage bonds roll off its balance sheet—a combination that keeps pressure on long-term borrowing costs. A tactical shift: After briefly halting balance-sheet runoff, the Fed announced roughly $40 billion per month in purchases of…

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