U.S. Treasury Secretary: Trump's MBS plan aims to hedge against Fed's balance sheet reduction

BlockBeats News, January 12 — U.S. Treasury Secretary Scott Bessent said last Friday that the goal of the Trump administration’s mortgage-backed securities (MBS) purchase program is to roughly match the pace at which these bonds are “roll-off” from the Federal Reserve’s balance sheet.

Bessent told Reuters, “The reality is that the Fed has about $15 billion worth of bonds rolling off each month, so I think the idea is to roughly match the Fed’s actions, which have been pushing in the opposite direction.”