Federal Open Market Committee:

Federal Register Volume 76, Number 212 (Wednesday, November 2, 2011)

Notices

Page 67731

From the Federal Register Online via the Government Printing Office [www.gpo.gov]

FR Doc No: 2011-28431

FEDERAL RESERVE SYSTEM

Federal Open Market Committee; Domestic Policy Directive of

September 20 and 21, 2011

In accordance with Section 271.7(d) of its rules regarding availability of information (12 CFR part 271), there is set forth below the domestic policy directive issued by the Federal Open Market

Committee at its meeting held on September 20 and 21, 2011.\1\

\1\ Copies of the Minutes of the Federal Open Market Committee at its meeting held on September 20 and 21, 2011, which includes the domestic policy directive issued at the meeting, are available upon request to the Board of Governors of the Federal Reserve System,

Washington, DC 20551. The minutes are published in the Federal

Reserve Bulletin and in the Board's Annual Report.

``The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and promote sustainable growth in output. To further its long-run objectives, the Committee seeks conditions in reserve markets consistent with federal funds trading in a range from 0 to [frac14] percent. The Committee directs the Desk to purchase, by the end of June 2012, Treasury securities with remaining maturities of approximately 6 years to 30 years with a total face value of $400 billion, and to sell Treasury securities with remaining maturities of 3 years or less with a total face value of $400 billion. The Committee also directs the Desk to maintain its existing policy of rolling over maturing Treasury securities into new issues and to reinvest principal payments on all agency debt and agency mortgage- backed securities in the System Open Market Account in agency mortgage- backed securities in order to maintain the total face value of domestic securities at approximately $2.6 trillion. The Committee directs the

Desk to engage in dollar roll transactions as necessary to facilitate settlement of the Federal Reserve's agency MBS transactions. The System

Open Market Account Manager and the Secretary will keep the Committee informed of ongoing developments regarding the System's balance sheet that could affect the attainment over time of the Committee's objectives of maximum employment and price stability.''

By order of the Federal Open Market Committee, October 20, 2011.

William B. English,

Secretary, Federal Open Market Committee.

FR Doc. 2011-28431 Filed 11-1-11; 8:45 am

BILLING CODE 6210-01-P

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