General World News

Fed pulling back from the MBS market cautiously

HW+ Federal Reserve

The Federal Reserve Bank of New York later this week plans to sell up to $90 million in agency mortgage-backed securities (MBS) now held in portfolio, a small sale, but still an interesting move in the current economic climate. 

The MBS asset sale is not indicative of a change in monetary policy on the part of the Federal Reserve, the announcement of the sale states. Instead, the New York Fed said it undertakes these smaller MBS transactions from time to time to test its “operational readiness” to implement “existing and potential details ⇒

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