MBS RECAP: Quiet August Trading is Underway

(Reuters) – The Federal Reserve is nearer to dialing back its massive bond-buying program after the unemployment rate dropped last month, a top Fed official said on Monday, adding that he wants reductions to start this fall.

The U.S. central bank is buying $85 billion in long-term securities each month in order to keep interest rates low and boost hiring and investment. Fed Chairman Ben Bernanke said in June that the Fed would probably make cuts to the program later this year, with an eye to ending it by mid-2014, when unemployment will likely be around 7 percent.

“Having stated this quite clearly, and with the unemployment rate having come down to 7.4 percent, I would say that the (Fed’s policy-setting) committee is now closer to execution mode, pondering the right time to begin reducing its purchases, assuming there is no intervening reversal in economic momentum in coming months,” Dallas Federal Reserve Bank President Richard Fisher said in remarks prepared for delivery to the National Association of State Retirement Administrators.

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/319443.aspx

Leave a Reply

WP2FB Auto Publish Powered By : XYZScripts.com
Bunk Beds