The Fed is Buying $1.25 Trillion of FNM and FRE

As part of its quantitative easing, the Fed is buying $1.25 trillion of mortgage-backed securities issued by housing-finance companies owned by the Federal Government (Fannie Mae (FNM), Freddie Mac (FRE) and Ginnie Mae). In addition, the Fed bought $300 billion of Treasury securities from March through September 2009 and it is presently buying $175 billion of corporate debt issued by Fannie, Freddie and the Federal Home Loan Banks. Total investment will be $1.725 trillion.