PGZ - Some Fed officials propose tapering MBS purchases faster than Treasurys - WSJ

amedved/iStock via Getty Images Some Federal Reserve officials are suggesting that the central bank cut back first on purchases of mortgage-backed securities before it scales back its buying of U.S. Treasury securities, the Wall Street Journal reports. The Fed has purchased $982B of mortgage bonds since March 5, 2020 and it plans to continue buying the asset class at a pace of at least $40B each month. Along with its $80B/month purchases of Treasury securities, the purchases are intended to keep credit flowing and stimulate the economy by keeping long-term borrowing costs low. "There are some unintended consequences and side effects of these ((MBS)) purchases that we are seeing play out," Dallas Fed President Robert Kaplan told the WSJ. He thinks the MBS purchases have been helping to fuel soaring home prices. He had previous said he questioned whether the purchases are still needed. Kaplan made his views known at the

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Some Fed officials propose tapering MBS purchases faster than Treasurys - WSJ