What is the Federal Reserve SOMA?
The System Open Market Account (SOMA) is the Federal Reserve's investment portfolio. It holds the securities the Fed buys and sells through open market operations, the main tool it uses to carry out monetary policy.
The account is managed by the Open Market Trading Desk at the Federal Reserve Bank of New York. It grows when the Fed buys securities, as in quantitative easing, and shrinks as holdings mature or roll off, as in quantitative tightening. Watching how its size and mix change over time is one of the clearest views into Fed policy.
- Managed by
- Federal Reserve Bank of New York
- Holds
- US Treasury bills, notes, bonds, TIPS and FRNs; agency debt; agency mortgage-backed securities
- Source
- New York Fed SOMA holdings