Posted: Tuesday, January 5, 2010
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Reuters this morning picks up mention of a story by iMarketNews.com writer Steven Beckner saying the U.S. Federal Reserve may re-enter the market for mortgage-backed securities after its planned exit at the end of the first quarter. The Fed has had a program in place to support the $5 trillion market with purchase of $1.25 trillion worth of the securitized loans, which as kept mortgage rates low. Beckner writes the Fed is prepared to “contemplate changes … depending on conditions in the economy,” Reuters quotes. Beckner quotes “people in the know” (love it) as saying MBS purchase is one option on the table.
