[The Federal Reserve to Stop Reducing Treasury Holdings Starting December 1] The Federal Reserve announced that it will stop reducing its Treasury holdings starting December 1. This decision was made following a decline in bank reserves, indicating that officials are relying more heavily on the federal funds rate as the primary tool for implementing monetary policy and assessing the liquidity conditions of the financial system. Although the Federal Reserve stated it will continue to reduce its holdings of mortgage-backed securities and reinvest matured funds into Treasury bills, it did not announce any additional liquidity measures to ease financing cost pressures.