© 2024 Arizent. All rights reserved.

Federal Reserve Will Continue to Buy MBS

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.

For reprint and licensing requests for this article, click here.
RMBS
MORE FROM ASSET SECURITIZATION REPORT