FOMC: Economic Activity ‘Leveling Out’

Posted by Orb Staff on August 13, 2009 No Comments
Categories : Residential Mortgage

ink=http://federalreserve.gov/newsevents/press/monetary/20090812a.htm]Federal Open Market Committee[/link] (FOMC), based on its findings that economic activity is ‘leveling out,’ says the Federal Reserve will begin slowing the pace of its Treasury securities purchases, which are to total $300 billion. ‘To promote a smooth transition in markets as these purchases of Treasury securities are completed, the committee has decided to gradually slow the pace of these transactions and anticipates that the full amount will be purchased by the end of October,’ an FOMC statement says. The Treasury purchases are complemented by the Fed's plans to purchase up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. The FOMC also announced Wednesday that it will maintain the target range for the federal funds rate at a range of 0% to .25% and that it anticipates keeping the rate at low levels for an extended period. SOURCE: [link=http://federalreserve.gov]Federal Reserve

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