[ForexNews]

The Federal Reserve announced schedules today for Term Auction Facility (TAF) and Term Securities Lending Facility (TSLF) operations through January. Auction offerings will be smaller than in the past, in line with the Fed's previously expressed intention "to gradually scale back these facilities in response to continued improvements in financial market conditions." While the Fed will continue to offer $75bn at each 28-day TAF auction, "the amounts offered under the existing cycle of auctions of 84-day funds will be reduced to $50 billion effective in October and to $25 billion in November and December, and the maturities of those operations will be reduced... to align the maturity dates of those operations with the maturities in the cycle for 28-day funds." The Fed also reduced the frequency and size of its Schedule 2 TSLF operations, offering $50bn in the October auction and $25bn at each of three monthly auctions from November through January. These reductions in auction sizes and frequencies reflect improvements in financial conditions, and market expects reductions to continue next year as the need for special facilities subsides.