Connect with us

Popular World News

Williams Says Fed’s Treasury Purchases Boost Housing Market, Too By Bloomberg

Williams Says Fed’s Treasury Purchases Boost Housing Market, Too By Bloomberg


Williams Says Fed’s Treasury Purchases Boost Housing Market, Too By Bloomberg

© Bloomberg. John Williams, president of the Federal Reserve Bank of San Francisco, listens during a Hutchins Center on Fiscal and Monetary Policy panel discussion at the Brookings Institution in Washington, D.C., U.S., on Monday, Jan. 8, 2018. The event was entitled Should the Fed Stick with the 2 Percent Inflation Target or Rethink It. Photographer: Andrew Harrer/Bloomberg

(Bloomberg) — The U.S. central bank’s purchases of Treasury and mortgage-backed securities are both contributing to lower housing costs, Federal Reserve Bank of New York President John Williams said, alluding to an ongoing debate among policy makers over whether or not to scale back MBS buying faster than Treasuries when the time comes to taper.
“I don’t see them as, one tool is particularly focused on housing and the other not,” Williams told reporters Monday after a virtual speech at an event hosted by the Bank of Israel. “Both of them affect interest rates. Therefore both of them affect the cost of housing.”
The Fed is currently buying $120 billion of Treasuries and mortgage-backed securities each month, and Fed officials are planning to discuss in upcoming policy meetings the timing and mix of reductions in the pace of purchases as the economy recovers from the pandemic.
Minutes of the June 15-16 meeting of the central bank’s rate-setting Federal Open Market Committee, on which Williams serves as vice chair, revealed a debate over the merits of tapering purchases of the two types of bonds at different rates.
“Several participants saw benefits to reducing the pace of these purchases more quickly or earlier than Treasury purchases in light of valuation pressures in housing markets,” according to the record of the gathering, which the Fed published on July 7.
“Several other participants, however, commented that reducing the pace of Treasury and MBS purchases commensurately was preferable because this approach would be well aligned with the Committee’s previous communications or because purchases of Treasury securities and MBS both provide accommodation through their influence on broader financial conditions,” the minutes said.
©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!