Federal Reserve Board Extends Period for Purchasing Fannie Mae/Freddie Mac MBSs and Debt
October 8, 2009
Source: Federal Reserve Press Release
On September 23, 2009, the Federal Reserve Board announced that economic activity is picking up, noting that there is increased activity in the housing sector. The Fed reaffirmed its ongoing program to purchase a total of $1.25 trillion of Fannie Mae and Freddie Mac mortgage-backed securities and up to $200 billion of their debt. However, in recognition of the improving economic conditions and to promote return of private investment to these markets, the Fed has decided to spread its purchases over an additional three months, through the end of March 2010. Previously, the Fed had planned to complete these purchases by the end of 2009.