Discussion Paper
The Evolution of the Federal Reserve’s Agency MBS Holdings
Na, Dave; Newman, Ellie; Schlusche, Bernd (2024-09-20)
The Federal Reserve (Fed) utilized its balance sheet as a monetary policy tool in response to the Global Financial Crisis (GFC) and the COVID-19 pandemic, acquiring large quantities of Treasury and agency securities. In 2022, the Fed began to reduce the size of its securities portfolio held in the System Open Market Account (SOMA) by allowing securities to roll off its balance sheet in amounts up to specific monthly redemption caps for Treasury securities and agency securities.
FEDS Notes , Paper 2024-09-20-2