BRIEF-NY Fed Says FOMC Decided To Reduce Monthly Pace Of Net Asset Purchases By $20 Bln For Treasury Securities,$10 Bln For Agency MBS

BY Reuters | AGENCY | 12/15/21 02:42 PM EST

Dec 15 (Reuters) -

* NY FED-DEC 15 FOMC DECIDED TO REDUCE MONTHLY PACE OF NET ASSET PURCHASES BY $20 BILLION FOR TREASURY SECURITIES,$10 BILLION FOR AGENCY MBS, STARTING MID-JAN

* NY FED-OPEN MARKET TRADING DESK AT FED RESERVE BANK OF NEW YORK TO INCREASE SOMA HOLDINGS OF TREASURY SECURITIES BY AT LEAST $40 BILLION PER MONTH

* NY FED-DIRECTED OPEN MARKET TRADING DESK AT FED RESERVE BANK OF NEW YORK TO INCREASE SOMA HOLDINGS OF AGENCY MBS BY AT LEAST $20 BILLION PER MONTH

* NY FED-DESK DIRECTED TO INCREASE HOLDINGS OF TREASURY SECURITIES,AGENCY MBS BY ADDITIONAL AMOUNTS AS NEEDED TO SUSTAIN SMOOTH FUNCTIONING OF MARKETS

* NY FED-FOMC JUDGES SIMILAR REDUCTIONS IN PACE OF NET ASSET PURCHASES BE APPROPRIATE EACH MONTH,PREPARED TO ADJUST BY CHANGES IN ECONOMIC OUTLOOK

* NY FED-DESK WILL COMPLETE THE MONTHLY PURCHASE PLANS ISSUED ON DECEMBER 13, 2021, AS DIRECTED BY THE FOMC Source text for Eikon: Further company coverage: [ ]

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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