The Fed’s Latest Investment Includes No MBS, Leaving Market With No Government Backstop
November 5, 2010
The Federal Reserve’s long-awaited “quantitative easing” decision to stimulate the U.S. economy involves pumping $600 billion more into purchases of U.S. Treasuries but – unlike the agency’s groundbreaking move nearly two years ago – no direct support for agency MBS. That leaves the private market...[Includes one graph]