Lacker: Fed needs to offload risky assets first
Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond, on Tuesday made a strong case to dump MBS sales off the Federal Reserves balance sheet first as it attempts to wind down its purchasing scheme.
Speaking to the Federal Reserve regional forum, Lacker indicated the best route to begin the tightening cycle would be to rely primarily on sales of the agency debt and agency-guaranteed mortgage-backed securities. According to Lacker, offloading risky assets first would move the Fed
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