Economy

Federal Reserve Chair Jerome Powell acknowledged skepticism around the central banks large-scale asset purchases during the pandemic, noting the Fed likely "should have stopped" sooner, but fell short of admitting that the purchase of MBS' contributed to housing disparities.

The Office of Management and Budget issued reduction in force notices to Treasury staff working in the Community Development Financial Institution office Friday, saying that the layoffs are necessary to "implement the abolishment" of the fund.

Federal Reserve Gov. Michael Barr said in a speech Thursday that he fears the gradual pace of price increases from tariffs being passed on to consumers may prolong the one-time inflationary effect of the tariffs to the point where it affects consumers' inflation expectations.

The shutdown halted the release of employment data, typically a driver of mortgage rate activity, likely resulting in trackers moving in varying directions.

Federal Reserve Vice Chair Philip Jefferson said Friday that the economic outlook is uncertain and that he was adopting a cautious approach to gauging whether slowing growth and a softening labor market outweigh inflation pressures from tariffs.

The first government shutdown since 2019 will slow flood insurance originations and new Small Business Administration loans, though self-funded banking regulators will continue operating as usual.

A gauge of present conditions fell 7 points to the lowest level in a year, while a measure of expectations for the next six months also dropped in September.

The CDFI Fund is updating definitions of eligible activity to be considered for the funds, including removing climate-focused financing and references to race and ethnicity.

Since the first day of the meeting, the 10-year Treasury yield has increased 16 basis points, with mortgage rates rising as a result, various trackers showed.

The top Senate Democrat pressed Treasury Secretary Scott Bessent for more details about the Trump administration's efforts to take the mortgage giants public.