Powell Acknowledges Fed Could Have Ended Covid-Era QE Sooner
Federal Reserve Chair Jerome Powell acknowledged skepticism around the central bank's large-scale asset purchases during the pandemic.
The Fed likely "should have stopped" sooner
Powell reflected on the central bank's aggressive asset purchases during the COVID-19 pandemic, acknowledging it may have been an overreaction.
- Powell spoke at the National Association for Business Economics conference
- The Fed's purchase of mortgage-backed securities (MBS) was questioned by market watchers
Powell said the pace of the central bank's purchase of MBS and U.S. Treasury securities was set to avoid a sharp unwelcome tightening of financial conditions.
Author's summary: Powell admits the Fed's asset purchases may have been an overreaction.