The Federal Open Market Committee (FOMC) of the Federal Reserve decided to continue its current policy of quantitative easing (QE) based on current economic conditions. The Fed currently purchases $40 billion in mortgage-backed securities (MBS) and $45 billion in Treasury securities monthly. Objectives for the QE program include:
- Keeping long term interest rates, including mortgage rates, low
- Supporting mortgage markets
- Easing broader financial conditions
- National unemployment rate reaches 6.50 percent
- Inflation is expected not to exceed 2.50 percent within the next one to two years
- Longer term inflation expectations are \”well-anchored.\”