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Feds Bullard Advocates Selling Mortgage Securities Gradually in 2010
Posted on February 08, 2010
The president of the Federal Reserve Bank of St. Louis said Monday the U.S. central bank should begin gradually selling its mortgage securities holdings later this year despite concerns from some investors the move would raise mortgage rates.James Bullard said in an interview the asset sales should happen before the Fed hikes short-term interest rates, a sequencing that is still being debated within the central bank. He also said the market was putting too high the odds that the Fed s first rate hike will come in November.To be sure, the Fed has yet to complete the purchase of $1.25 trillion...
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