Bloomberg News

Fed’s Sack Says Reinvestment in Mortgage Bonds Going ‘Smoothly’

November 02, 2011

Oct. 24 (Bloomberg) -- Brian Sack, the Federal Reserve Bank of New York’s markets group chief, said the central bank’s program of reinvesting proceeds from maturing housing debt into mortgage-backed securities isn’t disrupting markets.

“The purchases have gone smoothly and market liquidity seems to be quite good,” Sack said today in the text of remarks given at the New York Fed’s annual meeting with primary dealers.

The 22 primary dealers are counterparties to the central bank’s transactions and underwrite the government’s debt. The New York Fed released the text of Sack’s comments after the meeting.

--Editors: James Tyson, Scott Lanman

To contact the reporter on this story: Caroline Salas Gage in New York at csalas1@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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