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Language On Treasury Holdings Nothing New


Had some client Qs about how MBS fits into the new document's description of aiming to hold primarily Treasuries - this was the statement for example back in September 2014 when they embarked on B/S normalization way back when... so nothing surprising.

  • "The Committee intends that the Federal Reserve will, in the longer run, hold no more securities than necessary to implement monetary policy efficiently and effectively, and that it will hold primarily Treasury securities, thereby minimizing the effect of Federal Reserve holdings on the allocation of credit across sectors of the economy."
  • Though again a potential question for Powell at 1430ET/1930GMT.

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