Reported about 3 hours ago
PIMCO has advised the Federal Reserve to stop its process of reducing mortgage holdings, arguing that this could significantly bolster the U.S. housing market. The firm's recent report highlights that the gap between Treasury yields and mortgage rates has reached historically wide levels, contributing to high mortgage rates. PIMCO proposes that reinvesting the proceeds from mortgage-backed securities could effectively lower mortgage rates, potentially offering a more impactful solution than anticipated interest rate cuts.
Source: YAHOO