Quantitative Easing-Down: Mortage Backed Securities

The Federal Reserve Bank plans to eventually replace MBS with Treasuries

As Fed’s QE Era Ends, a New Trillion-Dollar Bond Dilemma Emerges

By Liz McCormick and Alex Harris    

‎March‎ ‎15‎, ‎2019‎ ‎3‎:‎00‎ ‎AM

 

> Size of Fed’s balance sheet is ‘trivial’ vis-à-vis composition           

> Outright MBS sales, open-market bill purchases seen as options

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More than a decade after it all began, the Federal Reserve is finally nearing the end of its grand experiment in monetary policy.

The Fed, which has been paring its crisis-era debt holdings, may lay out plans to end the program at its meeting next week. Yet in the Treasury market, the close of the quantitative-easing era could open another can of worms

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