The Federal Reserve announced today that they will continue to purchase mortgage securities and
debt of mortgage for Fannie Mae and Freddie Mac through March 2010. The idea is to gradually slow the pace of these purchases in order to promote a smooth transition in markets.
The U.S. central bank plans to purchase as much as $1.25 trillion of mortgage securities backed by Fannie and Freddie and as much as $200 billion of their debt for company operations. The Fed reaffirmed its purchases of $300 billion in treasuries will finish by October 2009.
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