St. Louis Fed president Bullard, the man who warned of a potential Japanese-style deflation weeks before the Fed unveiled QE-lite, says the government should leave the mortgage market to the private sector as much as possible.
That would be a huge shift as virtually all the mortgages granted in the wake of the collapse of the credit bubble in the US have gone through Freddie and Fannie. In that time, the Fed also purchased over a one-trillion dollars in mortgage-backed securities.
