Federal Reserve’s Bizarre Mortgage-backed Securities (MBS) Purchase Strategy With Ultra-low Available Housing Inventory (Housing Bubble Preservation?)

by confoundedinterest17

Chairman Powell, inform me why The Federal Reserve is shopping for a lot company mortgage-backed securities (MBS) whereas there’s a dearth of obtainable housing stock? Particularly when residence costs are rising at 12.2% year-over-year?

Mortgage charges had been already falling beginning in December 2018, however began rising once more in 2021 …till March once they started falling once more.

Is that this a bubble-preservation technique? Or simply ..?

The Fed’s MBS-buying technique jogs my memory of Tompall Glaser’s music “Put One other Go browsing the Hearth.”

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