Federal Financial Support of GSEs Begins, But Aid Doesn’t Seem to Address Long-Term Debt Problem
December 11, 2008
The Federal Reserve made its first purchase of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks late last week, snapping up $5 billion of the government-sponsored enterprises debt that matures in 2009 and 2010. The move initiates a process the Fed will use as it sets out to buy as much as $100 billion of such paper, with varying maturities. Initial purchases...