Commercial Banks Taper Treasury Purchases | Joseph Wang & DC Analyst
Forward Guidance
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The Federal Reserve's Challenge With Mortgage Backed Securities
The Federal Reserve is going to have 60 billion dollars in charges roll off every single month for the next three years. The Fed also owns, I think over $2 trillion worth of mortgage backed securities which are not like Treasuries and you can't know where it's over when they expire. So there's a question there whether the Fed will be patient and will kind of wait until their portfolio matures on its own or whether they will try to push it along and sell some MBS.
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