The Federal Reserve Board is holding its federal funds rate range at zero to 0.25 percent and promised to use “all available tools to promote economic recovery and preserve price stability.” The governors unanimously reiterated their pledge to buy as much as $1.25 trillion of agency mortgage-backed securities and $200 billion of agency debt by the end of 2009, and its plan to scoop up $300 billion of Treasuries by the fall.

The Fed “emphasized it would remain flexible, adjusting its purchases of mortgage-related and Treasury securities as incoming evidence suggest,” according to Sherry Cooper, executive vice president and global economic strategist, BMO Financial Group and chief economist at BMO Capital Markets. 

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