Top Fed Officials Defend Stance on Bond Purchasing
Since the economic crash a few years ago, the U.S. has had a bumpy, jerky, and sometimes upside-down experience trying to get its footing back so the country can move forward in a more sustainable fashion.
One idea that has been put in place to help pick up the pieces is the Central Bank’s asset-buying program. Recently, though, this program has been raising some concerns and questions, and two fed officials came in recently to defend it.
Boston Fed President Eric Rosengren and Fed Governor Jerome Powell claim that the asset-purchasing program is beneficial for the fiscal health of the country overall, citing higher tax revenue and increased output as two of the leading highlights in bond purchasing, according to Reuters. The Central Bank has been purchasing $85 billion worth of bonds per month.
Of the $85 billion, $40 billion is made up of Treasury bonds, and the remaining $45 billion is made up of mortgage-backed securities in the hope that it will encourage more spending and investment…