Powell says Fed likely to taper asset purchases 'at the same time'

"There really is little support for the idea of tapering MBS earlier than Treasuries. I think we will taper them at the same time," Powell said in a news conference after a two-day policy meeting that marked the Fed's first "deep dive" into when and how it could start reducing its asset purchases.

WASHINGTON: The Federal Reserve will likely reduce its monthly purchases of mortgage-backed securities and Treasuries simultaneously when it is time to pare back its support for the U.S. economy, though policymakers are debating whether to wind down the buying of MBS at a faster pace, Fed Chair Jerome Powell said on Wednesday.

Some U.S. central bank policymakers have said they want to end their monthly $40 billion of MBS purchases faster than the $80 billion in Treasuries because of the hot U.S. housing market.