Fed Undertakes QE3 With $40 Billion in MBS Purchases a Month

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.

“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,” the Federal Open Market Committee said today in a statement at the end of a two-day meeting in Washington.

via Business feed http://www.scmp.com/business/banking-finance/article/1036338/fed-undertakes-qe3-40-billion-mbs-purchases-month