Back in November, the Federal Reserve made headlines for announcing that it would soon begin to taper its monthly asset purchases. At the time of the announcement, Senior Mortgage Reporter Georgia Kromrei reported:
"The central bank's Federal Open Markets Committee said Wednesday that thanks to 'substantial further progress' the economy has made, it will reduce the pace of its $120 billion in monthly purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities."
For a refresher, back in late March 2020 as COVID-19 was rapidly spreading, Federal Reserve Chairman Jerome Powell announced a new quantitative easing program, although he didn't directly call it that at the time, to rescue the U.S. economy and restore market liquidity to the market.
Roughly one month after the Fed teased its tapering plan, the Federal Reserve Bank of New York quietly announced that it plans to sell up to $90 million in agency mortgage-backed securities (MBS). Senior Mortgage Reporter Bill Conroy noted in his coverage that while this is a small sale, it's still an interesting move given the current economic climate.
Given how closely people analyze every single move from the Fed, it's no surprise that they added that "no inference should be drawn about the timing of any change in the stance of monetary policy in the future" in their public statement. However, this doesn't mean there aren't some important takeaways from this decision that Conroy unpacks in his HW+ coverage. You can read the full story here.
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