Thursday, November 15, 2012

Big Jump in Federal Reserve MBS Debt Purchases

After questioning last week where the Fed's QE3 had gone, it seems as if we got an answer this week. This afternoon's report on the Fed Balance Sheet shows a sharp increase in Mortgage-Backed Securities holdings on their Balance Sheet, $37 Billion to be exact.

Keep in mind that the Fed had announced monthly purchases of $40 billion in MBS debt each and every month so it looks like they just made a big chunk of that for November.

Based on what I am seeing in the US equity markets, that $40 billion is not going to do much good as the stock market continues reeling from the election results, the upcoming fiscal cliff and the woes in the Euro Zone.


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2 comments:

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