Alea

The Federal Reserve Bank of New York today purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Selected private investment managers are acting as agents of the New York Fed in these purchases.

Summary data detailing these operations will be available on the New York Fed’s website beginning Thursday, January 8, 2009 and will be updated on a weekly basis each Thursday.

This program, first announced on November 25, 2008, is intended to support the mortgage and housing markets and foster improved conditions in financial markets more generally.

Q: How will purchases under the agency MBS program be financed?
A: Purchases will be financed through the creation of additional bank reserves.

Posted by jck on January 5th, 2009 at 9:58 am    2 Comments