Cameron Crise On Fed’s Balance Sheet Problem, Equity Drawdowns and Inflation
Macro Hive Conversations With Bilal Hafeez
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Is the Fed Starting to Hit Boods in Mortgage Securities?
The only way to get these assets to roll off organically is to slash interstrates and get mortgage rates low enough that prepayments become attractive. But of course, that's counterproductive given inflation. I think at some point in the next few months, people need to prepare themselves for a headline that says, essentially, fed is going to start hitting bods in mortgage securities. And then presumingl the consequence of that would be that mortgage rates, which shoots up by more than would otherwise be the case.
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