Fed: More MBS Buying and Long-Term Treasuries

By:: Bill Rice - MortgageLoan.com

The Federal Reserve is out of room on the Funds Rate, at a range of 0-0.25 percent. However, the Federal Open Market Committee (FOMC) assured us today there were plenty of tools left. The Fed announced they will maintain the Fed funds rate, continue or expand its purchasing of mortgage-backed securities (MBS), and is willing to purchase long-term Treasury bonds to expand credit for consumers.

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