Posted on 13 Sep 2012 by Neilson
The Federal Reserve said it would buy $40 billion each month of agency mortgage-backed securities on an open-ended basis, and said it could extend those purchases and buy additional assets if the jobs market doesn't improve.
The Fed also said it would continue a program known as Operation Twist, under which the central bank has been selling short-term bonds and using the proceeds to buy longer-term bonds.
Taken together, the Fed will be purchasing $85 billion of longer-term securities per month through the end of the year. Fed officials also said they expected to keep short-term interest rates near zero until at least mid-2015, beyond their previous estimate of late 2014.
Fed statement following the Federal Reserve’s September policy-setting meeting