[Federal Register Volume 77, Number 199 (Monday, October 15, 2012)]
[Notices]
[Pages 62513-62514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25258]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of 
September 12-13, 2012

    In accordance with Section 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 September 12-13, 2012.\1\
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    \1\ Copies of the Minutes of the Federal Open Market Committee 
at its meeting held on September 12-13, 2012, 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, DC 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 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 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

[[Page 62514]]

agency mortgage-backed securities. The Desk is also directed to begin 
purchasing agency mortgage-backed securities at a pace of about $40 
billion per month. The Committee directs the Desk to engage in dollar 
roll and coupon swap 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 
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objectives of maximum employment and price stability.''

    October 5, 2012.

    By order of the Federal Open Market Committee.
William B. English,
Secretary, Federal Open Market Committee.
[FR Doc. 2012-25258 Filed 10-12-12; 8:45 am]
BILLING CODE 6210-01-P