The general thinking now, it seems, is that the FOMC is likely to do a copy + paste job when it announces monetary policy today.Just a few weeks ago it seemed as though the Fed might launch quantitative easing II today, but now the thinking is, with the market having come back, and some data coming in firm, that might be put off until November.
To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.1 The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.
It seems very possible that they’ll repeat this paragraph word for word.
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