[Federal Register Volume 74, Number 176 (Monday, September 14, 2009)]
[Notices]
[Page 46995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22013]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of 
August 11 and 12, 2009

    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 August 11 and 12, 2009.\1\
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    \1\[thinsp]Copies of the Minutes of the Federal Open Market 
Committee at its meeting held on August 11 and 12, 2009, 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 of 0 to \1/4\ percent. The Committee directs the 
Desk to purchase agency debt, agency MBS, and longer-term Treasury 
securities 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 purchase up to $200 billion in 
housing-related agency debt and up to $1.25 trillion of agency MBS by 
the end of the year. The Desk is expected to purchase about $300 
billion of longer-term Treasury securities by the end of October, 
gradually slowing the pace of these purchases until they are completed. 
The Committee anticipates that outright purchaes of securities will 
cause the size of the Federal Reserve's balance sheet to expand 
significanly in coming months. 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, September 8, 2009.

Brian F. Madigan,
Secretary, Federal Open Market Committee.
[FR Doc. E9-22013 Filed 9-11-09; 8:45 am]
BILLING CODE 6210-01-S