The Federal Reserve’s purchase of Mortgage Backed Securities (MBS) is scheduled to end on March 31st. A few weeks ago I wrote that there was some talk of extending this program. It seems as though most signs are pointing to the market stepping in and taking the place of the Fed in these purchases. The Fed is 98.4% complete with its planned $1.25trillion dollars of MBS purchases.
federal reserve logo bank
federal reserve logo bank
federal reserve logo bank
federal reserve logo bank
federal reserve logo bank
There was some buzz a few weeks back, particularly at the beginning of February with William Dudley, New York Federal Reserve Bank President, leaving the door open for a possible extension of the MBS purchase program. That chatter has all but dried up as the market is stepping in and buying these securities with demand picking up as banks shore up their balance sheets.