FOMC Votes To Expand FX Limits Angell, Hoskins And Laware Dissent

REGULATIONS

Despite concerns that increased foreign exchange holdings might lead to sizable losses if the dollar were to strengthen substantially, the Federal Open Market Committee voted to expand the allowable amount of open foreign currency positions held in the System Open Market Account by $4 billion to$25 billion, according to the minutes from its March 27 meeting.

The FOMC also voted to expand the amount of eligible foreign currencies that the System was prepared to "warehouse" for the Treasury an