[Federal Register Volume 75, Number 10 (Friday, January 15, 2010)]
[Notices]
[Page 2544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-678]



[[Page 2544]]

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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Domestic Policy Directive of 
December 15 and 16, 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 December 15 and 16, 2009.\1\
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    \1\[thinsp]Copies of the Minutes of the Federal Open Market 
Committee at its meeting held on December 15 and 16, 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 from 0 to \1/4\ percent. The Committee directs the 
Desk to purchase agency debt agency and agency MBS 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 Desk is 
expected to execute purchases of about $175 billion in housing-related 
agency debt and about $1.25 trillion of agency MBS by the end of the 
first quarter of 2010. The Desk is expected to gradually slow the pace 
of these purchases as they near completion. The Committee anticipates 
that outright purchases of securities will cause the size of the 
Federal Reserve's balance sheet to expand significantly in coming 
months. 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 7, 2010.

Brian F. Madigan,
Secretary, Federal Open Market Committee.
[FR Doc. 2010-678 Filed 1-14-10; 8:45 am]
BILLING CODE 6210-01-S