Fed Mortgage Securities Purchases Draw Fire in White-Hot US Housing Market

S&P Global Market Intelligence, May 26, 2021–Brian Scheid
The housing market ran white-hot in April, roughly a year after the Fed began buying $40 billion in mortgage-backed securities in an effort to stave off the worst economic impacts of the COVID-19 pandemic. The Fed’s strategy was similar to a program the central bank launched in January 2009 to buy hundreds of billions of dollars worth of MBS in response to the then-current financial crisis. The central bank is now facing criticism that its monetary policy is further contributing to a potential crisis in the domestic housing sector.
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