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Friday, Oct 26
2012, 7:39 AM
The Fed's purchases of agency MBS is expected not just to lower rates more for conforming...
The Fed's purchases of agency MBS is expected not just to lower rates more for conforming mortgages than non-conforming, says Jeff Lacker, but also against other lending sectors like small business loans or autos. This puts the Fed in the position of "tilting the flow of credit" to one particular sector, and we know how that will work out. Not to worry, Mr. Lacker. Soon enough, the chairman will have the Fed buying that other stuff as well!