The Federal Open Market Committee (FOMC) issued a statement Tuesday indicating that the Federal Reserve will follow through with its plans to end its purchases of agency MBS this month as well as with plans to end Term Asset-Backed Securities Lending Facility (TALF) supporting loans backed by new-issue CMBS in June.

The agency MBS and debt purchases "are nearing completion, and the remaining transactions will be executed by the end of this month," the FOMC said.

However, the committee also noted that it will "continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability."

The FOMC also said in its statement that the Fed plans to follow through with its plans to close the TALF for loans backed by new-issue CMBS on June 30 and close the TALF program for loans backed by other types of collateral by March 31.

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