New York Fed official: Federal Reserve's Treasury purchases should slow down very soon.

An official responsible for implementing monetary policy at the New York Federal Reserve Bank said that the Fed's purchases of Treasury securities next month are likely to slow significantly as planned. "Adjustments to the size of our monthly bond purchases may happen very soon," said the System Open Market Account Manager Perli. Perli stated that while it is difficult to determine the market's demand for liquidity as the financial system prepares for the upcoming tax deadline, the current monthly purchases of around $40 billion in Treasury securities may be significantly reduced after April 15th. He also added, "To account for uncertainty and other factors, this reduction process may be more gradual." Perli was referring to the large-scale Treasury securities purchasing program launched by the Fed at the end of last year. At that time, the Fed announced that it would rebuild market liquidity by purchasing short-term government bonds after just ending its long-term balance sheet reduction operations.