What is the term used for buying and selling U.S. Treasury Securities for the Fed's own portfolio?

The term used for buying and selling U.S. Treasury Securities as part of the Federal Reserve's monetary policy is referred to as open market operations. This process involves the purchase and sale of government securities to regulate the money supply and influence interest rates in the economy.

When the Federal Reserve buys Treasury securities, it injects liquidity into the financial system, increasing the money supply and usually lowering interest rates. Conversely, when it sells these securities, it withdraws liquidity, reducing the money supply and often raising interest rates. Open market operations are a critical tool for the Fed in implementing its monetary policy objectives, such as promoting maximum employment, stable prices, and moderate long-term interest rates.

In contrast, terms like managing the float relate to the timing of cash flows and the availability of funds, discount buying refers to borrowing money from the Federal Reserve at a discount rate, and reserve adjustment typically involves changes to the reserves banks are required to hold. These terms serve different purposes within the context of banking and monetary policy, highlighting why they do not correctly define the buying and selling of Treasury Securities for the Fed's portfolio.