[Federal Register Volume 74, Number 74 (Monday, April 20, 2009)]
[Notices]
[Page 17959]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-9035]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of March 
17 and 18, 2009

    In accordance with Sec.  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 March 17 and 18, 2009.\1\
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    \1\[thinsp]Copies of the Minutes of the Federal Open Market 
Committee at its meeting held on March 17 and 18, 2009, 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, D.C. 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 of 0 to \1/4\ percent. The Committee directs the 
Desk to purchase GSE debt GSE-guaranteed MBS, and longer-term Treasury 
securities during the intermeeting period with the aim of providing 
support to private credit markets and economic activity. The timing and 
pace of these purchases should depend on conditions in the markets for 
such securities and on a broader assessment of private credit market 
conditions. The Committee anticipates that the combination of outright 
purchases and various liquidity facilities outstanding will cause the 
size of the Federal Reserve's balance sheet to expand significantly in 
coming months. The Desk is expected to purchase up to $200 billion in 
housing-related GSE debt by the end of this year. The Desk is expected 
to purchase at least $500 billion in GSE-guaranteed MBS by the end of 
the second quarter of this year and is expected to purchase up to $1.25 
trillion of these securities by the end of this year. The Committee 
also directs the Desk to purchase longer-term Treasury securities 
during the intermeeting period. Over the next six months, the Desk is 
expected to purchase up to $300 billion of longer-term Treasury 
securities. 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, April 9, 2009.

Brian F. Madigan,
Secretary, Federal Open Market Committee.
[FR Doc. E9-9035 Filed 4-17-09; 8:45 am]
BILLING CODE 6210-01-S