Circular
Federal Reserve Announces Initiation of Program to Purchase Direct Obligations of Housing-Related GSEs and MBS
November 25, 2008
Circular No. 12033

The Federal Reserve has announced that it will initiate a program to purchase the direct obligations of housing-related government-sponsored enterprises (GSEs)—Fannie Mae, Freddie Mac, and the Federal Home Loan Banks—and mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae.

This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally.

See the press release for full details.

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