Fed to begin Treasury bond purchases of about $60 billion per month
|In its recently published statement regarding the monetary policy implementation, the Federal Reserve announced that it will begin the United States (US) Treasury bond purchases of about $60 billion per month to maintain over time ample reserve balances.
The US Dollar Index largely ignored these comments and was last seen down 0.4% on the day at 98.29. Below are some additional takeaways, per Reuters.
"Purchases will be in addition to the ongoing purchases related to run off of holdings of mortgage-backed securities."
"Purchases to continue at least until second quarter of next year."
"Will conduct overnight repo operations at least through January to assure ample reserves even during spikes in demand."
"Actions are purely technical measures and do not represent a change in the stance of monetary policy."
"Open to adjusting the plan as needed."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.