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Economic Brief

July 7, 2020

Richmond Fed Brief Explores the Fed’s Recent MBS Intervention

The Richmond Fed’s latest Economic Brief provides an overview of the Federal Reserve’s recent intervention in markets for mortgage-backed securities.

The Fed’s MBS purchases — made in response to financial disruptions caused by COVID-19 — appear to have restored smooth function to MBS markets. However, the large amount of purchases necessary to achieve this outcome raises some concern about the resilience of private-market structures that perform this critically important function.

The Richmond Fed’s Economic Brief series provides essays on economic issues and trends. Sign up to receive an email notification when a new essay is posted.


As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District — including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia — to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.

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Jim Strader (804) 697-8956 (804) 332-0207 (mobile)