Minutes of the FOMC

May 9, 2007

Federal Open Market Committee meeting held Board of Governors Office of the Federal Reserve System in Washington, D.C., on 5/9/07....released on 5/30/2007 at 2:00 p.m. (eastern time)

excerpts...
"The Manager of the System Open Market Account reported on recent developments in foreign exchange markets. There were no open market operations in foreign currencies for the System's account in the period since the previous meeting. The Manager also reported on developments in domestic financial markets and on System open market transactions in government securities and federal agency obligations during the period since the previous meeting. By unanimous vote, the Committee ratified these transactions....

By unanimous vote, the Committee extended for one year beginning in mid-December 2007 the reciprocal currency ("swap") arrangements with the Bank of Canada and the Banco de Mexico. The arrangement with the Bank of Canada is in the amount of $2 billion equivalent and that with the Banco de Mexico is in the amount of $3 billion equivalent. Both arrangements are associated with the Federal Reserve's participation in the North American Framework Agreement of 1994. The vote to renew the System's participation in the swap arrangements maturing in December was taken at this meeting because of the provision that each party must provide six months' prior notice of an intention to terminate its participation..........compliments of FederalReserve.Gov