Pressure on chair Jerome Powell (pc) to begin scaling back bond buying sooner rather than later has probably eased amid concern that spread of the coronavirus delta variant could sap the economic recovery.
NEW YORK: Policy hawks at the Federal Reserve (Fed) are setting their sights on scaling back the United States central bank’s massive intervention in the mortgage market as home prices soar. But the Fed leadership doesn’t sound convinced by arguments in favour of a hasty exit strategy.
The debate – over whether to taper the Fed’s purchases of mortgage-backed securities (MBS) faster than its buying of Treasury debt – will probably be near the top of the agenda when officials gather soon to discuss next steps for policy.
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