I'm curious about the Federal Reserve's decision to purchase Mortgage-Backed Securities (MBS). What are the reasons behind this action? How does it impact the economy and the housing market?
5 answers
Rosalia
Thu Oct 24 2024
The Federal Reserve's acquisition of agency debt and agency MBS is depicted in Figure 1.
Raffaele
Thu Oct 24 2024
The primary objective of LSAP I was to provide support to the struggling U.S. housing markets.
SapphireRider
Thu Oct 24 2024
By 2010, the Fed had purchased approximately $200 billion worth of agency debt.
SeoulSerenitySeeker
Thu Oct 24 2024
Additionally, the Fed acquired around $1.25 trillion of agency MBS during the same period.
CherryBlossomKiss
Thu Oct 24 2024
These purchases were made as part of the Fed's initial round of Large Scale Asset Purchases (LSAP I).