Federal Reserve could shift focus to buying mortgage securities

The biggest bond dealers in the United States are betting that the Federal Reserve is poised to start a new round of stimulus, injecting more money into the economy by purchasing mortgage securities instead of U.S. Treasuries, Bloomberg reported, based on its own survey. Fed Chairman Ben Bernanke and his fellow policy-makers, who bought $2.3 trillion of Treasury and mortgage-related bonds between 2008 and June of this year, will start another program next quarter, 16 of the 21 primary dealers of U.S. government securities that trade with the central bank said in a Bloomberg News survey. The Fed may buy about $545 billion in home-loan debt, based on the median of the firms that provided estimates, Bloomberg said.

The biggest bond dealers in the United States are betting that the Federal Reserve is poised to start a new round of stimulus, injecting more money into the economy by purchasing mortgage securities instead of U.S. Treasuries, Bloomberg reported, based on its own survey. Fed Chairman Ben Bernanke and his fellow policy-makers, who bought $2.3 trillion of Treasury and mortgage-related bonds between 2008 and June of this year, will start another program next quarter, 16 of the 21 primary dealers of U.S. government securities that trade with the central bank said in a Bloomberg News survey. The Fed may buy about $545 billion in home-loan debt, based on the median of the firms that provided estimates, Bloomberg said.