Powell Acknowledges Fed Could Have Ended Covid-Era QE Sooner
Federal Reserve Chair Jerome Powell acknowledged skepticism around the central bank's large-scale asset purchases during the pandemic.
The Fed likely "should have stopped" sooner
Powell reflected on the central bank's aggressive asset purchases during the COVID-19 pandemic, acknowledging it may have been an overreaction. He noted that the pace of the central bank's purchase of MBS and U.S. Treasury securities was set to avoid a sharp unwelcome tightening of financial conditions.
- Powell spoke at the National Association for Business Economics conference
- He specifically pointed to mortgage-backed securities
Powell stopped short of admitting that the purchase of MBS' contributed to housing disparities.
Author's summary: Powell regrets Fed's Covid-era QE timing.