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
The Edge Malaysia /
npub15q…t0mcv
2024-08-25 01:44:01
Author Public Key
npub15q3n6g46fstp0h7wemjzwkh9jy6akndzdzk2sz8q0hwgvz6sfe3srt0mcvPublished at
2024-08-25 01:44:01Event JSON
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"content": "US Fed mortgage bond holdings play 'central' policy rule, paper says\n==========\n\nFederal 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.\n\n#FederalReserve #MortgageBonds #MonetaryPolicy #QuantitativeEasing #QuantitativeTightening #HousingMarket #Economics #InterestRates #JacksonHole #FinancialMarkets\n\nhttps://theedgemalaysia.com/node/724123",
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