Bullard Says Fed Will Likely Hold Mortgage-Backed Bonds Longer

Federal Reserve Bank of St. Louis President James Bullard, who backed this week’s Fed decision to continue bond buying, said the Fed will probably hold mortgage-backed securities among its assets longer than it had expected.

“We are more inclined to hold these longer than we were previously,” Bullard said today in response to an audience question after a speech in Boston. “We will probably hold mortgage-backed longer” and “a couple years in the future make a decision on what to do.”

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