Powell Acknowledges Fed Could Have Ended Covid-Era QE Sooner
Federal Reserve Chair Jerome Powell acknowledged skepticism around the central bank's large-scale asset purchases during the pandemic.
The Fed likely "should have stopped" sooner
However, Powell fell short of admitting that the purchase of MBS' contributed to housing disparities.
- Powell acknowledged previous skepticism from market watchers who questioned the inclusion of agency MBS purchases during the pandemic recovery.
- The pace of the central bank's purchase of MBS and U.S. Treasury securities was set "in order to avoid a sharp unwelcome tightening of financial conditions.
Author's summary: Powell reflects on the Fed's asset purchases during the pandemic.