FED doesn't care about accelerating money growth and rising prices, they have a mission to do, and they will do it:
Monday February 26, 10:40 am Eastern Time
Fed says buying US Tsy coupons 8/31/02 to 2/15/03
NEW YORK, Feb 26 (Reuters) - The Federal Reserve said on Monday it was buying U.S. Treasury securities dated Aug. 31, 2002 through Feb. 15, 2003, its third open market intervention of the session.
Bids were due from dealers at 11 a.m. (1600 GMT), with delivery was set for Tuesday, Feb. 27.
The Fed said all callable debt was excluded from the purchase, which will add permanent reserves to the banking system, along with the following three maturities:
-- 5-1/8 percent of Dec. 31, 2002;
-- 4-3/4 percent of Jan. 31, 2003;
-- 10-3/4 percent of Feb. 15, 2003.
Earlier the Fed added $4 billion in temporary reserves to the banking system though 10-day repurchase agreements, accepting the following collateral:
-- $0.225 billion in Treasuries, stop out 5.30 percent,
-- $2.285 billion in agencies, stop out 5.36 percent,
-- $1.490 billion in MBS, stop out 5.38 percent.
The Fed also added $1.995 billion through 28-day repos, for which it accepted:
-- $0.755 billion in Treasuries, stop out 5.20 percent,
-- $0.570 billion in agencies, stop out 5.28 percent,
-- $0.670 billion in MBS, stop out 5.30 percent.
Federal funds were trading at 5-1/2 percent, on the Fed's target for the rate. |
