US Treasury Secretary says Trump's MBS plan aims to hedge against Fed balance sheet tightening

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On January 12th, US Treasury Secretary Scott Besant stated that the Trump administration's goal in launching the Mortgage Backed Securities (MBS) purchase program is to roughly match the speed at which these bonds roll off the Federal Reserve's balance sheet. Besent stated in an interview that the Federal Reserve is rolling back approximately $15 billion in bonds each month, with plans aimed at roughly matching the actions of the Fed.

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