Posted To: Pipeline Press

Seen on a chalkboard outside a bar: “Beer shortage coming soon. Panic buy here!” Moving from booze to bonds, thinking that the Fed would buy $5 billion a day of MBS is wishful drinking. Uh, sorry, I meant wishful thinking. The Fed’s role is to help the stability of our financial markets, and it did so last year and this year by buying Treasury mortgage-backed securities. But things are pretty stable (aside from the usual Congressional tug of war ), worldwide economies are picking up a little steam, leading Federal Reserve Bank of Chicago leader Charles Evans and other Fed officials saying they’re on board with an imminent pullback in the central bank’s bond buying stimulus effort. Evans added that as high as inflation is right now, it may not have risen enough…(read more)

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Source: Mortgage News Daily