The Federal Open Market Committee (FOMC) said Wednesday that the central bank will maintain its reinvestments of principal payments from agency MBS and debt holdings into new agency MBS.

The Federal Reserve noted that the U.S. economy “has been expanding moderately” since its last meeting but “despite some signs of improvement, the housing sector remains depressed.”

The FOMC will keep the target for the Fed Funds rate at 0 to 1/4%, noting that it believes economic conditions still warrant exceptional low rates through at least late 2014.

Committee member Jeffrey Lacker continued to dissent on the last point while others voted for the aforementioned policy action.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.