Fed picks firms for debt buys

The Federal Reserve selected four firms to manage a $500-billion purchase of mortgage-backed securities that it plans to complete by June.

The central bank chose as investment managers BlackRock Inc., Goldman Sachs Asset Management, Pacific Investment Management Co. and Wellington Management Co.

Fed officials announced the program Nov. 25 and said the action was taken to “reduce the cost and increase the availability of credit for the purchase of houses.”