[Federal Register Volume 74, Number 203 (Thursday, October 22, 2009)]
[Notices]
[Pages 54565-54566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25425]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of 
September 22 and 23, 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

[[Page 54566]]

directive issued by the Federal Open Market Committee at its meeting 
held on September 22 and 23, 2009.\1\
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    \1\[thinsp]Copies of the Minutes of the Federal Open Market 
Committee at its meeting held on September 22 and 23, 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 from 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 complete purchases of about $300 
billion of longer-term Treasury securities by the end of October. It is 
also expected to execute purchases of up to $200 billion in housing-
related agency debt and about $1.25 trillion of agency MBS by the end 
of the first quarter of 2010. 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 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, October 15, 2009.

Brian F. Madigan,
Secretary, Federal Open Market Committee.
[FR Doc. E9-25425 Filed 10-21-09; 8:45 am]
BILLING CODE 6210-01-S