βWhen it finally did come, it came a little quicker than expected, but we were absolutely there to take the actions that we said we
would take. And those actions are today. So, you know, we announced that we're resuming reserve management purchases that are
completely separate from, from monetary policy. It's just we need to keep an ample supply of reserves out there. Why so big? The
answer to that is, you know, if you look ahead, you will see that April 15th is coming up and our framework is such that we want to
have ample reserves even at times when reserves are at a low level temporarily. So that's what happens on tax day. People pay a lot
of money to the government. Reserves drop sharply and temporarily. So this seasonal buildup that we'll see in the next few months
was going to happen anyway. It was going to happen because April 15 is April 15. There's also a secular ongoing growth of the
balance sheet. We have to keep reserves, call it constant as it relates to the banking system or to the whole economy. And that
alone calls for us to increase about 20, 25 billion dollars per month. So that's a small part that's going on. It's also happening in
the context of a temporary few month front loading to get reserves high enough to get through the, you know, the tax period in
mid April. So that's what's happening there.β --- JP.
View quoted note β