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 noted this while speaking at the National Association for Business Economics conference, specifically pointing to mortgage-backed securities.
- The Fed's asset purchases during the COVID-19 pandemic may have been an overreaction.
- 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.
Author's summary: Powell reflects on the Fed's Covid-era QE.