[Federal Register Volume 78, Number 10 (Tuesday, January 15, 2013)]
[Notices]
[Page 2996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00716]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of 
December 11-12, 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 December 11-12, 2012.\1\
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    \1\ Copies of the Minutes of the Federal Open Market Committee 
at its meeting held on December 11-12, 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 complete 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. Following the completion of this program, the 
Committee directs the Desk to resume its policy of rolling over 
maturing Treasury securities into new issues. From the beginning of 
January, the Desk is directed to purchase longer-term Treasury 
securities at a pace of about $45 billion per month. 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. The Desk is also directed to continue 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 objectives of maximum 
employment and price stability.

    By order of the Federal Open Market Committee, January 8, 2013.
William B. English,
Secretary, Federal Open Market Committee.
[FR Doc. 2013-00716 Filed 1-14-13; 8:45 am]
BILLING CODE 6210-01-P