The Federal Open Market Committee (FOMC) on Tuesday said it would reinvest payments on its holdings of agency debt and agency mortgage-backed securities into longer-term Treasury securities, and continue to roll over the Federal Reserve's holdings of Treasury securities as they mature.
The Fed now holds $1.277 trillion worth of federal agency securities and agency mortgage-backed securities, which accounts for 54% of the Fed's balance sheet.
Nine of the ten-member committee backed the move, with
- A route to economic growth – The Belt and Road Initiative 2018 survey
- Policymakers should act now to prevent next crisis – IMF panellists
- The Bank of Italy’s approach to risk-based budgeting
- Dudley backs floor-based system for setting monetary policy
- Asian Infrastructure Investment Bank – Raising expectations