Newly installed as Fed chair, Kevin Warsh wants the Federal Reserve out of the mortgage business. The central bank still holds almost two trillion dollars in mortgage-backed securities, the residue of two rounds of crisis buying and something the law allows but never required it to hold. A central bank that keeps housing as its favored sector, whatever the crisis-era logic for getting there, is running something closer to industrial policy than monetary policy.
The case for getting out is clean. The case for getting out cheaply is not.
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