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The New York Federal Reserve published an article on Tuesday stating that the Fed's balance sheet is a "critical tool" used to support the FOMC's monetary policy objectives and, in rare cases, to support financial stability. The Federal Reserve sets its monetary policy stance mainly by adjusting the target range of the federal funds interest rate, but the FOMC has also previously helped ease the overall financial situation by purchasing US treasury bond bonds and institutional mortgage-backed securities (MBS), especially when the interest rate is around zero. This kind of purchase is also used to solve market dysfunction, for example, when the COVID-19 disrupted the financial market in March 2020. Christian Cabanilla, Eric LeSueur, and Josh Younger of the New York Federal Reserve wrote that the FOMC also instructed the Fed to reduce the size and holdings of its balance sheet to a level consistent with the efficient and effective implementation of monetary policy under an ample reserve mechanism. @fgt