Fed Should Continue Bond Reinvestment: Fed’s Dudley
The U.S. Federal Reserve should keep reinvesting proceeds from maturing U.S. Treasuries and mortgage bonds it owns even after the central bank begins raising interest rates, New York Federal Reserve President William Dudley said on Wednesday. When “lift off” occurs, the Fed should continue buying bonds from the money from its maturing government and mortgage securities, Dudley said in response to a question from a reporter at a press briefing.
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