The Real Deal Miami

Fed to start buying Treasury notes

March 25, 2009 11:32AM

The Federal Reserve will begin purchasing long-term Treasury notes today in an effort to bring down borrowing costs. The Fed will focus on notes slated to mature between February 2016 and February 2019, according to a statement from the Federal Reserve Bank of New York, and more debt purchases will follow over the next eight days. The Fed announced the Treasury purchase plan last week. At the same time, the Fed released a plan to purchase up to $1.45 trillion of housing debt in an effort to reduce home loan rates.