Operation twist, by definition, sterilizes some securities purchases with sales of others.
The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.
If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.
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The third is through outright purchases of securities such as U.S. Treasury Securities and, these days, mortgage backed securities.
Yields on longer-term U.S. Treasurys initially fell after the Fed announcement, as investors factored in more purchases of securities by the central bank.
In reality, all it boils down to is Fed purchases of securities to expand bank lending and investing and get the money supply growing faster.
Bank loans and purchases of securities are described as bank credit.
In order to buy a large enough position in a stock for the holding to have any impact at all on the overall portfolio, the big funds need to make big purchases of securities.
The combined suits are the culmination of lengthy investigations into the circumstances surrounding the purchases of these securities.
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This analysis changes little if the increase in government spending is financed by purchases of government securities by the Federal Reserve.
When the Fed purchases more Treasury securities (or anything else) faster, downward pressure is placed on interest rates while upward pressure is placed on money growth.
When the Fed engages in open market purchases of government securities (or anything else for that matter), it creates new money whether interest rates are high or low.
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Many forecasters predict that interest rates will rise from today's unusually low levels, in part because the Federal Reserve this month is ending its heavy purchases of mortgage securities.
So they print money to tell themselves and us a lie, just as easy Fed policy and massive purchases of Treasury securities tell the government the lie that it is creditworthy.
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Once a municipal bond is refinanced, (prerefunded) the issuer uses the proceeds of the new issue and purchases US Treasury securities (collateral) that are used to pay the interest and principal on the original, more expensive debt until maturity or the call date, whichever the escrow agreement states.
The Fed's purchases of US government securities had "kept inflation from falling even further", he said.
Federal Reserve officials have hinted in recent days that they may resume large-scale purchases of mortgage-backed securities, paid for with newly printed money.
The rebate program is due to expire April 30, and the Fed has announced it will halt its purchases of mortgage-backed securities this month.
Purchases of mortgage-backed securities by the Federal Reserve and the government's bailed-out mortgage giants, Fannie Mae and Freddie Mac, helped keep mortgage credit flowing and interest rates low.
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Doug Noland of David Tice, a fund-management firm, reckons that their purchases of mortgage-backed securities during the financial crisis in autumn 1998 bailed out many troubled financial firms.
Fed policy-setters have gathered again to resume deliberations about the economy after last month embarking upon purchases of mortgage-backed securities in a bid to push down long-term interest rates.
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The Fed has also recorded a handsome profit on its emergency-lending programmes to healthy banks, as did the Treasury on its purchases of mortgage-backed securities and, so far, the Federal Deposit Insurance Corporation on bank-loan guarantees.
In a summary of TARP efforts on Thursday, Geithner pointed out that prime fixed-rate securities, the sort once envisioned as purchases for the program, have increased in value by 40% as liquidity has come back to markets.
Mortgage rates are at historically low levels, which is helping buoy transactions, but if central banks begin to withdraw unconventional programmes to support the housing market, such as the Federal Reserve's purchases of mortgage-backed securities, the recovery may slow.
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Under Operation Twist, already under way when the Federal Reserve said it would embark upon purchases of mortgage-backed securities last month, the central bank uses proceeds from the sale of short-term Treasury securities to buy long-term ones in its bid to push down long-term rates.
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On Jan. 5 the Federal Reserve began its first purchases of government-guaranteed mortgage securities.
But more interesting, to the bond markets, was what Mr Draghi said about the Securities Markets Programme: the ECB's purchases of bonds from Italy, Spain, Greece and the rest.
The account that made the purchases had not traded in Heinz securities in the previous six months, and overall action in Heinz call options was minimal earlier this week before spiking Wednesday.
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The effectiveness of ECB purchases of government bonds through its Securities Market Program has also been weakened, analysts say, by Greece's debt restructuring, where the ECB was treated better than private investors.
QE3 refers to a potential third round of quantitative easing in which the Federal Reserve purchases U.S. Treasury securities in a bid to push down long-term yields, which move inversely to the price.
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