THE Federal Reserve (Fed) said it’s holding off on starting to sell its US$2.7 trillion (RM12 trillion) of mortgage bond holdings, which is encouraging at least some investors to buy the securities.
The Fed is looking to winnow down its mortgage bond holdings as it tries to cut its balance sheet in general. For now, it’s effectively stopping reinvestment of principal payments it gets, but in the minutes to its March meeting, it said at some point it will make sense to look at selling off its securities.
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