Speaking at the University of Michigan’s Ford School of Public Policy, HousingWire reports Federal Reserve Chairman Ben Bernanke defended the Federal Open Market Committee’s open-ended quantitative easing, saying holding interest rates down keeps budget debts lower. Raising rates would complicate Congress’ upcoming budget negotiations. As MHProNews has learned, the committee chose to continuing purchasing agency mortgage-backed securities to the tune of $40 billion a month. The report says, “Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.”

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