Fed Slashes T‑Bill Purchases in Sharper Than Signaled Pullback

The Federal Reserve said Monday it will buy about $25 billion of Treasury bills each month, a greater wind down than anticipated of a programthat was meant to ease short-term funding costs by rebuilding reserves in the financial system.

The New York Fed’s open markets desk plans to conduct the reserve management purchases over the monthly period ending May 13, according to its website. It also plans to conduct about $15.5 billion in reinvestment purchases over the same time.

Wall Street strategists had expected the central bank to take a slow and careful approach to unwinding the program launched ...