The Federal Open Market Committee discussed buying agency mortgage-backed securities backed by adjustable-rate mortgages, and while some members "thought it would be useful," others saw little potential benefit, and the FOMC made no decision on purchasing ARM MBS at its August meeting, according to minutes of the meeting released yesterday.

Also discussed was progressively reducing the pace of the Fed's buying Treasury securities, agency debt, and agency MBS prior to the end of the asset purchase programs in an effort to "smooth" the transition in markets, but again the panel took no action.

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