The Federal Reserve has unveiled its own quantitative easing plan in a bid to kick-start the US credit markets.
Similar to the Bank of England's strategy to buy UK gilts, the Federal Open Market Committee has launched a new facility to purchase up to $300bn in longer-term Treasury securities over the next six months. It will also purchase up to an additional $750bn of agency mortgage-backed securities, bringing its total purchases of the securities to upwards of $1.25trn this year, and will increase its agency debt buys by up to $100bn to a total of $200bn. "The Federal Reserve has launched the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and smal...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
