11/04/2021
It’s official. The Federal Reserve announced Wednesday that it will begin to taper monthly asset purchases of mortgage backed securities. They began purchasing in March 2020 in response to the pandemic. The monthly purchases have helped to keep the cost of financing low, and consequently, most economists expect rates to continue to rise.
The Federal Reserve will reduce the pace of its $120 billion in monthly purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities.