The FED conducted open market operations through acquisition of u.s. Government bonds that the country's banks are holding. In particular, the FED launched the policy of increased buying MBS. As of March 31, 2010, the FED has completed the purchase of 1.25 trillion but still continue to conduct their transactions in the next months. MBS buy back program of the branch are coordinated by the Federal Reserve Bank of New York branch under the direction of the Federal open market Committee. The goal of this program is to provide support for the housing and mortgage markets to help the recovery of the financial markets.
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