7.13.21
In an interview with the Wall Street Journal, Federal Reserve’s James Bullard expressed he is ready to start scaling back purchasing of bonds—specifically mortgage-backed securities— once other top central bank officials have reached a consensus. Back in March 2021, the Fed announced it plans to keep buying at least $40 billion each month of mortgage bonds. Many Fed officials are questioning the need for a bond buying program of this size given the strength of the housing market which most argue is contributing to skyrocketing home prices. Bullard told the WSJ that he does not believe the housing sector is in a bubble, but stated, “I am a little bit concerned that we’re feeding into an incipient housing bubble.”