Why the Federal Reserve owns mortgage-backed securities — and what it hopes to achieve by offloading them
It all dates back to the financial crisis of 2008-09.
Robert Kaplan, the president of the Federal Reserve Bank of Dallas, on Thursday told Bloomberg that the Fed ought to think about slowing down how quickly it’s shrinking its balance sheet. What’s a balance sheet? It’s a ledger of the Fed’s assets and liabilities that, in the middle of the financial crisis, the Fed expanded as […]