The Federal Reserve, who is a little over four months out from needing a new or reinstated leader, announced it purchased $7.029 billion in agency mortgage-backed securities, which is compared to $6.937 billion the week prior. This week’s purchase did not include securities guaranteed by either GSE, the Government National Mortgage Association, or Ginnie Mae.
In September, the Fed announced it would leave rates unchanged and begin a gradual shrinking of its balance sheet, which sits at $4.5 trillion due to purchases of Treasury bonds and mortgage-backed securities in the aftermath of the financial crisis, according to CNBC.
However, despite the decision to leave rates alone last month, Atlanta Fed President Raphael Bostic said he believe the U.S. central bank should raise interest rates again by the end of the year.
"We, in our forecasts of movements for the year, had said we expected three hikes in the course of 2017. I am still in that space," said Bostic in an interview by Reuters on the sidelines of a Fed conference in Austin, Texas while adding that he isn’t, “wedded to anything.”
Regarding the expiration of Janet Yellen’s term in February 2018, President Donald Trump has interviewed four candidates for the job. According to Reuters, the nomination could come within weeks.
“He faces a choice between two continuity candidates, current Chair Janet Yellen and Governor Jerome Powell, and two outsiders, Gary Cohn, currently his top economic adviser, and former Fed Governor Kevin Warsh,” the report said.
Yellen was rumored to step down last year if now President Trump was elected, but now almost a year later, many wonder if she is up for another term if asked.
"I have said that I intend to serve out my term as chair and that I'm really not going to comment on my intentions beyond that," CNBC cited Yellen telling reporters following the Fed's two-day policy meeting in September. "I will say that I have not had a further meeting with President Trump. I met with him early in my term and I've not had a further meeting with him."