Nearly Naked (Simple Trades)

Specifically,
those members supported a program under which the
Committee would announce its intention to purchase,
by the end of June 2012, $400 billion of Treasury securities
with remaining maturities of 6 years to 30 years
and to sell an equal amount of Treasury securities with
remaining maturities of 3 years or less. They expected
this program to put downward pressure on longer-term
interest rates and to help make broader financial conditions

“The Federal Open Market Committee seeks
monetary and financial conditions that will
foster price stability and promote sustainable
growth in output. To further its long-run
objectives, the Committee seeks conditions
in reserve markets consistent with federal
funds trading in a range from 0 to ¼ percent.
The Committee directs the Desk to purchase,
by the end of June 2012, Treasury securities
with remaining maturities of approximately
6 years to 30 years with a total face
value of $400 billion, and to sell Treasury securities
with remaining maturities of 3 years
or less with a total face value of $400 billion.
The Committee also directs the Desk to
maintain its existing policy of rolling over
maturing Treasury securities into new issues
and to reinvest principal payments on all
agency debt and agency mortgage-backed securities
in the System Open Market Account
in agency mortgage-backed securities in order
to maintain the total face value of domestic
securities at approximately $2.6 trillion.
The Committee directs the Desk to engage
in dollar roll transactions as necessary to
facilitate settlement of the Federal Reserve’s
agency MBS transactions. The System Open
Market Account Manager and the Secretary
will keep the Committee informed of ongoing
developments regarding the System’s balance
sheet that could affect the attainment
over time of the Committee’s objectives of