US Mortgage Market Should Brace for Turmoil, Says QE Architect

Plunging government bond yields could complicate the Federal Reserve’s plans to exit the US mortgage market, according to one of the pioneers of the central bank’s bond-buying programme. The central bank has been one of the biggest buyers of mortgage-backed securities since the financial crisis, racking up a total of almost $1.8tn at the peak, as it looked to cap the cost of home loans for a generation of borrowers as part of a broad “quantitative easing” programme.

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