The Federal Reserve should avoid selling mortgage-backed securities during quantitative tightening because the market has limited appetite and selling would cause significant price declines, but could opportunistically dribble out small amounts (10 billion per month) if rates fall.
normativepending
Speaker
Chris WhelanEvidence Quote
“if rates rallied the desk in new york should have standing instructions to sell take advantage of it”
Source
The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wang & Chris Whalen— Forward GuidanceCreated: 8/11/2026, 1:23:06 AM
My Notes
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