Free Trial

Powell Says MBS Purchases Not Direct Assistance to Housing

FED

Q: Re housing market and MBS purchases

- A: The market was experiencing severe dysfunction. We have articulated what our exit path is from that. It's not meant to provide direct assistance to the housing market, that was never the intent.

  • It's a very close relation to the treasury market and a very important market on its own. That's why we bought MBS. Not an intention to help the housing market, which was really not a problem this time at all. It's a situation where we will taper asset purchases when the time comes to do that. And those purchases will come to zero over time. And that time is not yet.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.