Fed to lower limit on Treasury securities that cannot be replaced at maturity

According to Wu, the Fed has announced that it will reduce the limit on the amount of Treasury securities it allows to mature without replacement from the current maximum of $60 billion per month to $25 billion starting June 1. At the same time, the Fed will maintain the maturity limit for mortgage-backed securities at $35 billion per month and invest any excess principal payments on mortgage-backed securities in Treasury bonds.