Fed Will Begin Buying Mortgage-Backed Securities Next Month
The Federal Reserve announced moments ago that it will begin its previously announced plan to buy mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae early next month.
The idea behind the plan is to bolster the weak housing market and restore confidence to the broader economy.
The Fed said it would pay for the securities by printing more money, a move that could fan inflationary fears.
To execute the buying spree, the Fed has hired BlackRock, Goldman Sachs, PIMCO and Wellington Management Company.
December 30, 2008; 4:41 PM ET
Categories: The Ticker | Tags: Fannie, Federal Reserve, Freddie, Ginnie Mae, mortgage
Save & Share: Previous: It's the SEC's Turn to Get Grilled on Capitol Hill
Next: In Focus Today: Jobless Claims, Madoff
Posted by: john88 | December 30, 2008 5:19 PM | Report abuse
Posted by: whocares666 | December 30, 2008 9:12 PM | Report abuse
The comments to this entry are closed.