[Federal Register Volume 75, Number 43 (Friday, March 5, 2010)]
[Notices]
[Page 10267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4690]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of 
January 26 and 27, 2010

    In accordance with Sec.  271.25 of its rules regarding availability 
of information (12 CFR part 271), there is set forth below the domestic 
policy directive issued by the Federal Open Market Committee at its 
meeting held on January 26 and 27, 2010.\1\
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    \1\[thinsp]Copies of the Minutes of the Federal Open Market 
Committee at its meeting held on January 26 and 27, 2010, which 
includes the domestic policy directive issued at the meeting, are 
available upon request to the Board of Governors of the Federal 
Reserve System, Washington, D.C. 20551. The minutes are published in 
the Federal Reserve Bulletin and in the Board's annual report.
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    The Federal Open Market Committee seeks monetary and financial 
conditions that will foster price stability and promote sustainable 
growth in output. To further its long-run objectives, the Committee 
seeks conditions in reserve markets consistent with federal funds 
trading in a range from 0 to \1/4\ percent. The Committee directs the 
Desk to purchase agency debt and agency MBS during the intermeeting 
period with the aim of providing support to private credit markets and 
economic activity. The timing and pace of these purchases should depend 
on conditions in the markets for such securities and on a broader 
assessment of private credit market conditions. The Desk is expected to 
execute purchases of about $175 billion in housing-related agency debt 
and about $1.25 trillion of agency MBS by the end of the first quarter. 
The Desk is expected to gradually slow the pace of these purchases as 
they near completion. The Committee anticipates that outright purchases 
of securities will cause the size of the Federal Reserve's balance 
sheet to expand significantly in coming months. The Committee directs 
the Desk to engage in dollar roll transactions as necessary to 
facilitate settlement of the Federal Reserve's agency MBS transactions 
to be conducted through the end of the first quarter, as directed 
above. The System Open Market Account Manager and the Secretary will 
keep the Committee informed of ongoing developments regarding the 
System's balance sheet that could affect the attainment over time of 
the Committee's objectives of maximum employment and price stability.
    By order of the Federal Open Market Committee, February 23, 2010.

Brian F. Madigan,
Secretary, Federal Open Market Committee.
[FR Doc. 2010-4690 Filed 3-4-10; 8:45 am]
BILLING CODE 6210-01-S