How will unsettled holdings of MBS be treated?
The August 4 level of $2.054 trillion in securities holdings does not account for about $2.5 billion in unsettled purchases from the $1.25 trillion agency MBS purchase program. The settlements of these MBS purchases will result in an increase in the face value of our securities holdings that will reduce the necessary amount of total purchases of longer-term Treasury securities by an equal amount.