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[MaryAM]

I keep reading this statement on the referenced page. First - is the FED mandated to accomodate the mortgage market? Where is that mandate stated? Second, what does "should help maintain accommodative financial conditions" when they are talking about raising interest rates?

The Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to reinvest principal payments from the Federal Reserve’s holdings of agency debt and agency mortgage-backed securities (MBS) in agency MBS (see http://www.federalre...mccalendars.htm for the most recent FOMC statement). This policy, by keeping the Committee’s holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.


http://www.newyorkfe...lastTwenty.html