U.S. Treasury Secretary: Trump's MMT Plan Aims to Combat Fed Balance Sheet Contraction

By: theblockbeats.news|2026/01/12 05:16:06
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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 of its purchases with the pace of these bonds "rolling off" the Fed's balance sheet.

Bessent said in an interview with Reuters, "The reality is that the Fed is shrinking by about $15 billion of bonds a month, so the idea is to roughly match the Fed's actions, which have been pushing in the opposite direction."

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