On September 17, 2014, the Federal Open Market Committee (“FOMC”) of the Board of Governors of the Federal Reserve System (“Federal Reserve Board”) issued a statement summarizing the discussion in the recent meeting of the FOMC regarding ways to normalize the stance of monetary policy and the Federal Reserve’s securities holdings. The statement summarized four key elements of the intended approach when the FOMC determines that it is appropriate to begin normalizing the stance of monetary policy, namely: (i) the FOMC will determine the timing and pace of policy normalization in a way that promotes its statutory mandate of maximum employment and price stability; (ii) the FOMC will reduce the Federal Reserve’s securities holdings gradually, primarily by ceasing to reinvest repayments of principal on securities held in the System Open Market Account; (iii) the FOMC intends to ensure that the Federal Reserve will hold no more securities than necessary to implement monetary policy and that the Federal Reserve will hold primarily Treasury securities; and (iv) the policy outlined by the FOMC will remain subject to adjustment in light of future economic and financial developments.

The full text of the FOMC policy release is available at: