Just as the Fed created money to buy Treasuries and MBS during QE, it now destroys money as these securities “roll off” the balance sheet.
These are getting to be serious amounts.
Didn’t miss a beat.
“The very slow pace may still be contributing to a buildup of various financial imbalances.”
During the sell-off, it ignored the whiners on Wall Street.
With a sense of urgency. No more dilly-dallying around.
Fed’s assets drop to lowest level in over three years.
But what’s happening with mortgage-backed securities?