Steady Fed Holds the Line on Asset Purchases
The biggest question going into an otherwise humdrum FOMC meeting was whether the Fed would shift its asset purchase mix further out along the maturity curve. The answer, for now…is no. Nothing else changed.
Key points from the committee’s official statement included:
The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time…
The path of the economy will depend significantly on the course of the virus.
The Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and agency mortgage-backed securities by at least $40 billion per month until further progress has been made…