On Wednesday, February 10th, 2010:
Fed Chairman says interest rates must rise.
He said that "at some point" in the future the Fed will "need to tighten financial conditions" by raising short-term interest rates to ease inflationary pressures.
Bernanke said another economic support program aimed at driving down mortgage rates and bolstering the housing market is on track to end in March. By then, the Fed will have finished buying $1.25 trillion in mortgage securities from Fannie Mae and Freddie Mac. It will also have finished buying $175 billion in debt from the mortgage giants.
Some economists said Bernanke left out what investors are really watching for: when the Fed will move to tighten credit.
FNMA 4.5% 30 year coupon immediately moves higher 60bps.
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