U.S. Treasury's Financial Stability Plan - Federal Reserve Announces Plan to Support Mortgage Lending & Housing Markets
In an effort to provide greater support to mortgage lending and housing markets, the Federal Open Market Committee decided to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities. This brings its total purchases of these securities up to $1.25 trillion this year and increases its purchases of agency debt by up to $100 billion to a total of up to $200 billion this year. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.
The Federal Reserve has launched the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses and anticipates that the range of eligible collateral for this facility is likely to be expanded to include other financial assets. The Committee will continue to carefully monitor the size and composition of the Federal Reserve’s balance sheet in light of evolving financial and economic developments.