Federal Reserve issues Federal Open Market Committee statement
"The Federal Reserve Board and the Federal Open Market Committee on Thursday released the attached table and charts [Projections materials] summarizing the economic projections and the target federal funds rate projections made by Federal Reserve Board members and Federal Reserve Bank presidents for the September 12-13 meeting of the Committee. The table will be incorporated into a summary of economic projections released with the minutes of the September 12-13 meeting. Summaries of economic projections are released on a quarterly schedule.""To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in June, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative."
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