Archived IMT (2009.06.23)

FROM THE APRIL FOMC STATEMENT: ". . . the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn. The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets". This LAST SENTENCE of the APRIL FOMC was CHANGED from the last sentence of the March meeting, opening the door for future purchases with committing themselves. APRIL: "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". Fed will keep the door open for more purchases without being specific. FX markets may expect modest USD weakness to ensue. especially if yields are dragged down rapidly.