Wednesday, 12 August 2009

Fed easing up on Treasury purchases

Here is the statement from Federal Reserve Bank of New York regarding the easing of Treasury purchase by the Fed by the end of October

The Federal Reserve is in the process of buying $300 billion of Treasury securities. On Wednesday, August 12, 2009, the Federal Open Market Committee announced that it decided to gradually slow the pace of these transactions and anticipates that the full amount will be purchased by the end of October. This approach is intended to promote a smooth transition in markets as these purchases of Treasury securities are completed. To implement this decision, the Federal Reserve Bank of New York Open Market Trading Desk will gradually reduce both the size of individual operations and the frequency of operations, beginning with the two-week schedule to be released on Wednesday, August 19, 2009.

Not included in the statement was the (implicit) warning "Subject to change without notice"

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