WASHINGTON, DC-Worried that the economic recovery has stalled, the Federal Reserve Bank will be stepping up its investment in government debt. The decision was made during a one-day meeting, held on Tuesday, in which Fed officials came to the conclusion that the recovery is weaker than it had anticipated during its last meeting in June. It will use the interest it is earning from expiring mortgage-backed securities to buy Treasuries that are maturing in the next two to 10 years.

Last year and in the beginning of 2010, the Federal Reserve brought considerable firepower to the market, buying $1.25 trillion in mortgage securities, $175 billion in mortgage debt from the GSEs and $300 billion in government debt.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.