Derby’s Take: Fed’s Williams Flags Potency of Mortgage Bond Buying
Wall Street Journal, May 4, 2021–Michael S. Derby (subscription)
The housing market is on fire across the U.S., so why is the Federal Reserve still offering support to that part of the financial system? According to Federal Reserve Bank of New York President John Williams, it is because the Fed may get more bang for the buck when it buys mortgage-related debt than it does with its larger monthly purchases of Treasury debt.
https://www.wsj.com/articles/derbys-take-feds-williams-flags-potency-of-mortgage-bond-buying-11620120602