The Federal Open Market Committee (FOMC) maintained a target range for the federal funds rate of 0 to 1/4 percent throughout the first half of 2011.In the statement accompanying each FOMC meeting over the period,
The Committee noted that economic conditions were likely to warrant exceptionally low levels for the federal funds rate for an extended period. At the end of June
The Federal Reserve concluded its purchases of longer-term Treasury securities under the $600 billion purchase program announced in November 2010; that program was undertaken to support the economic recovery and to help ensure that inflation, over time, returns to levels consistent with the FOMC's mandate of maximum employment and price stability. In addition, throughout the first half of 2011,
The Committee maintained its existing policy of reinvesting principal payments from its agency debt and agency mortgage-backed securities in longer-term Treasury securities. In its June statement, the Committee noted that it would regularly review the size and composition of its securities holdings and was prepared to adjust those holdings, as appropriate, to foster maximum employment and price stability.