The Federal Open Market Committee announced Wednesday that the Federal Reserve will purchase $600 billion of longer term Treasuries in the first half of 2011 and $850 to $900 billion through the second half.

The Fed said it will continue to re-invest in principal payments from its securities holdings.

The FOMC is the Fed’s policy-making body. It held the federal funds target rate — the nation’s benchmark lending rate — in a range between zero and 0.25%.

FOMC Thomas Hoenig, president of the Federal Reserve Bank of Kansas City voted against the decision.

“The risks of additional securities purchases outweighed the benefits,” Hoenig said. “Continued high level of monetary accommodation increased the risks of future financial imbalances.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.