A growing bloc of Federal Reserve committee members favors selling some of the Fed’s $1.25trn in mortgages and other non-Treasury assets that were bought during the financial crisis to unfreeze credit markets and keep interest rates low, several Fed sources told CNBC. At least six members of the Fed’s policymaking committee favor near-term asset sales, which—if the economy keeps improving—could lead the Fed to announce a program to sell assets by the third or fourth quarter of this year, these sources said. While financial markets are focused on the language of the policy statement from next week’s meeting of the Federal Open Market Committee, the asset sales are likely to be debated vigorously.
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
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The story for the housing market over the past three years has been, “Home sales are down, home prices are up.” Because inventory was so restricted after the pandemic, prices pushed higher even as demand weakened. That story may finally be inverting as unsold inventory of homes is now great enough that home prices are […]
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Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio