It’s over. Federal Open Market Committee officially decided to conclude its more than two-year-old asset purchase program this month due to the substantial improvement in the outlook for the labor market and strength in the broader economy.
The Zero Interest Rate Policy, on the other hand, remains in full effect.
Since the committee met in September, information suggests that the economy is expanding at a moderate pace.
“The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions,” the FOMC said.
The federal funds rate will maintain the current 0 to 1⁄4 percent target range.
From here, former Federal Reserve Chairman Alan Greenspan said he doesn’t think the Fed can unwind years of extraordinary stimulus without causing turmoil in financial markets.
At time of publication, the HW 30, HousingWire’s exclusive list of mortgage-related companies, was down .36%.
