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NY Fed Note Post-FOMC, Maintaining Support

FED
  • Effective September 16, 2020, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to continue to increase the System Open Market Account (SOMA) holdings of Treasury securities and agency mortgage-backed securities (MBS) at the current pace.
  • The FOMC also directed the Desk to increase holdings of Treasury securities and agency MBS by additional amounts, and purchase agency commercial mortgage-backed securities (CMBS), as needed to sustain smooth functioning of markets for these securities.
  • Consistent with this directive, the Desk plans to continue to increase SOMA holdings of Treasury securities by approximately $80 billion per month. Treasury purchases will continue to be conducted across a range of maturities and security types. The Desk will continue to roll over at auction all principal payments from SOMA holdings of maturing Treasury securities.

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