Fed to Begin Tapering Asset Purchases
Pagosa Springs Real Estate Update:
December 18, 2013
In its final meeting of 2013, the Federal Reserve’s Federal Open Market Committee (FOMC) voted to begin dialing back its asset purchase program in January.
Pointing to ongoing, stable improvements in economic activity and labor market conditions since the start of its latest quantitative easing program in September 2012, the committee agreed to scale back its purchases of agency mortgage-backed securities (MBS) to a pace of
$35 billion per month; at the same time, purchases of Treasury securities will shrink to $40 billion per month. Together, the cuts represent an overall reduction of $10 billion in purchases each month.