Treasury Borrowing Advisory Committee wants Fed to expand purchases including MBS

Reuters: Members of the Treasury Borrowing Advisory Committee believe the central bank will need to take further drastic action to get credit into the hands of small businesses and American households who need it most. Members of the TBAC, which advises the Treasury on federal debt issuance, speak regularly with Fed and administration officials about financial policy.

One of the sources said he and other members of the committee has pushed in recent days for the central bank to enlarge its QE program beyond the $500 billion of Treasury bills and $200 billion of mortgage-backed securities purchases it announced on Sunday.

He added that TBAC members want the program to be more focused on restoring liquidity to mortgage backed-securities (MBS) markets in order to help lower mortgage rates for Americans already feeling the strain from the disruption, they say.

The full article is available at https://www.reuters.com/article/us-health-coronavirus-fed-lending/u-s-treasury-panel-wants-fed-to-expand-purchases-revive-crisis-era-credit-facility-sources-idUSKBN2173IS

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