[Federal Register Volume 77, Number 140 (Friday, July 20, 2012)]
[Notices]
[Page 42730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17688]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of June 
19-20, 2012

    In accordance with Section 271.7(d) 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 June 19-20, 2012.\1\
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    \1\ Copies of the Minutes of the Federal Open Market Committee 
at its meeting held on June 19-20, 2012, which includes the domestic 
policy directive issued at the meeting, are available on the Board's 
Web site, www.federalreserve.gov. The minutes are also 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 [frac14] percent. The Committee directs 
the Desk to continue the maturity extension program it began in 
September to purchase, by the end of June 2012, Treasury securities 
with remaining maturities of 6 years to 30 years with a total face 
value of $400 billion, and to sell Treasury securities with remaining 
maturities of 3 years or less with a total face value of $400 billion. 
Following the conclusion of these purchases, the Committee directs the 
Desk to purchase Treasury securities with remaining maturities of 6 
years to 30 years with a total face value of about $267 billion by the 
end of December 2012, and to sell or redeem Treasury securities with 
remaining maturities of approximately 3 years or less with a total face 
value of about $267 billion. For the duration of this program, the 
Committee directs the Desk to suspend its current policy of rolling 
over maturing Treasury securities into new issues. The Committee 
directs the Desk to maintain its existing policy of reinvesting 
principal payments on all agency debt and agency mortgage-backed 
securities in the System Open Market Account in agency mortgage-backed 
securities. These actions should maintain the total face value of 
domestic securities at approximately $2.6 trillion. The Committee 
directs the Desk to engage in dollar roll transactions as necessary to 
facilitate settlement of the Federal Reserve's agency MBS transactions. 
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, July 12, 2012.
William B. English,
Secretary, Federal Open Market Committee.
[FR Doc. 2012-17688 Filed 7-19-12; 8:45 am]
BILLING CODE 6210-01-P