US Fed mortgage bond holdings play 'central' policy rule, paper says
==========

Federal Reserve mortgage bond holdings are crucial for monetary policy; paper presented at Kansas City Fed's Jackson Hole conference on Aug 25, 2024; Fed's bond purchases since spring 2020 increased holdings to around US$9 trillion by summer 2022; mortgage bond holdings rose from US$1.4 trillion in March 2022 to US$2.7 trillion; paper states banks and Fed each reduced mortgage spread by about 40 bps during 2020/21, leading to US$3 trillion increase in mortgage originations; current Fed holdings down to US$7.3 trillion, with mortgage holdings at US$2.3 trillion; QT process slower than expected due to housing market conditions.

#FederalReserve #MortgageBonds #MonetaryPolicy #QuantitativeEasing #QuantitativeTightening #HousingMarket #Economics #InterestRates #JacksonHole #FinancialMarkets

https://theedgemalaysia.com/node/724123 

 nostr:note1ucry90zpg7s4f2dcgjx7k630eparngl53nqcf33f73t6qq7skvqs0lfv58