k********8
发帖数: 7948 | 1 http://www.federalreserve.gov/newsevents/press/monetary/20101103a.htm
Press Release
Release Date: November 3, 2010
For immediate release
Information received since the Federal Open Market Committee met in
September confirms that the pace of recovery in output and employment
continues to be slow. Household spending is increasing gradually, but
remains constrained by high unemployment, modest income growth, lower
housing wealth, and tight credit. Business spending on equipment and
software is rising, though less rapidly than earlier in the year, while
investment in nonresidential structures continues to be weak. Employers
remain reluctant to add to payrolls. Housing starts continue to be depressed
. Longer-term inflation expectations have remained stable, but measures of
underlying inflation have trended lower in recent quarters.
Consistent with its statutory mandate, the Committee seeks to foster maximum
employment and price stability. Currently, the unemployment rate is
elevated, and measures of underlying inflation are somewhat low, relative to
levels that the Committee judges to be consistent, over the longer run,
with its dual mandate. Although the Committee anticipates a gradual return
to higher levels of resource utilization in a context of price stability,
progress toward its objectives has been disappointingly slow.
To promote a stronger pace of economic recovery and to help ensure that
inflation, over time, is at levels consistent with its mandate, the
Committee decided today to expand its holdings of securities. The Committee
will maintain its existing policy of reinvesting principal payments from its
securities holdings. In addition, the Committee intends to purchase a
further $600 billion of longer-term Treasury securities by the end of the
second quarter of 2011, a pace of about $75 billion per month. The Committee
will regularly review the pace of its securities purchases and the overall
size of the asset-purchase program in light of incoming information and will
adjust the program as needed to best foster maximum employment and price
stability.
The Committee will maintain the target range for the federal funds rate at 0
to 1/4 percent and continues to anticipate that economic conditions,
including low rates of resource utilization, subdued inflation trends, and
stable inflation expectations, are likely to warrant exceptionally low
levels for the federal funds rate for an extended period.
The Committee will continue to monitor the economic outlook and financial
developments and will employ its policy tools as necessary to support the
economic recovery and to help ensure that inflation, over time, is at levels
consistent with its mandate.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman;
William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra
Pianalto; Sarah Bloom Raskin; Eric S. Rosengren; Daniel K. Tarullo; Kevin M.
Warsh; and Janet L. Yellen.
Voting against the policy was Thomas M. Hoenig. Mr. Hoenig believed the
risks of additional securities purchases outweighed the benefits. Mr. Hoenig
also was concerned that this continued high level of monetary accommodation
increased the risks of future financial imbalances and, over time, would
cause an increase in long-term inflation expectations that could destabilize
the economy. | k********8
发帖数: 7948 | 2 http://www.newyorkfed.org/markets/opolicy/operating_policy_101103.html
Statement Regarding Purchases of Treasury Securities
November 3, 2010
On November 3, 2010, the Federal Open Market Committee (FOMC) decided to
expand the Federal Reserve’s holdings of securities in the System Open
Market Account (SOMA) to promote a stronger pace of economic recovery and to
help ensure that inflation, over time, is at levels consistent with its
mandate. In particular, the FOMC directed the Open Market Trading Desk (the
Desk) at the Federal Reserve Bank of New York to purchase an additional $600
billion of longer-term Treasury securities by the end of the second quarter
of 2011.
The FOMC also directed the Desk to continue to reinvest principal payments
from agency debt and agency mortgage-backed securities into longer-term
Treasury securities. Based on current estimates, the Desk expects to
reinvest $250 billion to $300 billion over the same period, though the
realized amount of reinvestment will depend on the evolution of actual
principal payments.
Taken together, the Desk anticipates conducting $850 billion to $900 billion
of purchases of longer-term Treasury securities through the end of the
second quarter. This would result in an average purchase pace of roughly $
110 billion per month, representing about $75 billion per month associated
with additional purchases and roughly $35 billion per month associated with
reinvestment purchases.
The Desk plans to distribute these purchases across the following eight
maturity sectors based on the approximate weights below:
Nominal Coupon Securities by Maturity Range*
TIPS**
1½ -2½
Years
2½-4 Years
4½-5
Years
5½-7
Years
7-10
Years
10-17
Years
17-30
Years
1½-30
Years
5%
20%
20%
23%
23%
2%
4%
3%
*The on-the-run 7-year note will be considered part of the 5½- to 7-
year sector, and the on-the-run 10-year note will be considered part of the
7- to 10-year sector.
**TIPS weights are based on unadjusted par amounts.
Under this distribution, the Desk anticipates that the assets purchased will
have an average duration of between 5 and 6 years. The distribution of
purchases could change if market conditions warrant, but such changes would
be designed to not significantly alter the average duration of the assets
purchased.
To provide operational flexibility and to ensure that it is able to purchase
the most attractive securities on a relative-value basis, the Desk is
temporarily relaxing the 35 percent per-issue limit on SOMA holdings under
which it has been operating. However, SOMA holdings of an individual
security will be allowed to rise above the 35 percent threshold only in
modest increments.
Purchases associated with balance sheet expansion and those associated with
principal reinvestments will be consolidated into one set of operations to
be announced under the current monthly cycle. On or around the eighth
business day of each month, the Desk will publish a tentative schedule of
purchase operations expected to take place through the middle of the
following month, as well as the anticipated total amount of purchases to be
conducted over that period. The schedule will include a list of operation
dates, settlement dates, security types to be purchased (nominal coupons or
TIPS), the maturity date range of eligible issues, and an expected range for
the size of each operation.
The Desk expects to conduct the November 4 and November 8 purchase
operations that were announced on October 13, and it plans to publish its
first consolidated monthly schedule on November 10 at 2:00 p.m.
Purchases will be conducted with the Federal Reserve’s primary dealers
through a series of competitive auctions operated through the Desk’s
FedTrade system. Consistent with current practices, the results of each
operation will be published on the Federal Reserve Bank of New York’s
website shortly after each purchase operation has concluded. In order to
ensure the transparency of our purchase operations, the Desk will also begin
to publish information on the prices paid in individual operations at the
end of each monthly calendar period, coinciding with the release of the next
period’s schedule. |
|
