The New York Times Deal Book reports August 10:

Acknowledging that the recovery has slowed, the Federal Reserve announced Tuesday that it would use the proceeds from its huge mortgage-bond portfolio to buy long-term Treasury securities, The New York Times’s Sewell Chan reports from Washington.

By buying government debt, the Fed is taking an unmistakable step to maintain the large amount of money that it pumped into the economy, starting in 2007, to prop up the financial and housing markets.

Read more: http://dealbook.blogs.nytimes.com/2010/08/10/saying-recovery-has-slowed-fed-to-buy-u-s-debt/