FOMC reveals preparations for market exit

The US Federal Open Markets Committee (FOMC) is moving ahead with plans to shut down emergency support for the capital markets, despite a sluggish recovery and fears of a new crisis in commercial real estate. In the minutes for its December 14-15 meeting the committee’s members discussed plans to step up reverse repo operations in the Treasury debt and mortgage-backed securitisation (MBS) markets. December saw a few trial reverse repos of treasury and agency debt, and reverse repos of M