[Federal Register Volume 77, Number 170 (Friday, August 31, 2012)]
[Notices]
[Pages 53201-53202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-21557]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of July 
31-August 1, 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 July 31-August 1, 2012.\1\
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    \1\ Copies of the Minutes of the Federal Open Market Committee 
at its meeting held on July 31-August 1, 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 \1/4\ percent. The Committee directs the 
Desk to continue the maturity extension program it announced in June 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.


[[Page 53202]]


    By order of the Federal Open Market Committee, August 22, 2012.
William B. English,
Secretary, Federal Open Market Committee.
[FR Doc. 2012-21557 Filed 8-30-12; 8:45 am]
BILLING CODE 6210-01-P