By Paul Kiernan and

Nick Timiraos

Updated Oct. 11, 2019 11:15 am ET

WASHINGTON—The Federal Reserve will begin buying Treasury bills on Tuesday to boost its balance sheet and avoid a recurrence of the unexpected strains experienced in money markets last month, the central bank said in a statement.

The Fed said Friday it will begin initial purchases of $60 billion in Treasurys over the month beginning next Tuesday. The central bank will continue purchases of Treasury bills of unspecified amounts into the second quarter of 2020.

The Fed’s rate-setting committee met by videoconference last Friday, Oct. 4, to discuss recent developments in money markets and voted unanimously on the plans announced Friday morning to purchase Treasury bills to expand its balance sheet.

Write to Paul Kiernan at [email protected] and Nick Timiraos at [email protected]