[The Federal Reserve to Conduct $40 Billion Net Asset Purchases This Month] According to Golden Finance, the Federal Reserve has launched a reserve management purchase plan, preparing to once again expand its balance sheet by purchasing short-term U.S. Treasury bonds to prevent stress in the overnight lending market. The overnight lending market is critical to the entire financial system. The Federal Reserve stated that it will begin expanding its balance sheet this month by purchasing $40 billion in Treasury bills and plans to gradually reduce the pace of new purchases sometime next year.