Fed Votes To Maintain Securities Purchasing

Posted by Orb Staff on January 31, 2013 No Comments
Categories : Residential Mortgage

13210_fed Fed Votes To Maintain Securities Purchasing The Federal Reserve is staying the course with its policy of buying massive quantities of government securities.

The central bank's Federal Open Market Committee issued a statement affirming that it will continue to purchase ‘agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.’ The Fed adds that its buying spree is designed to ‘support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate.’

The committee also decided to maintain the target range for the federal funds rate at 0% to 0.25%, adding that it ‘anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6.5 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored.’

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