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Key takeaway: Federal Reserve Gov. Michael Barr said shrinking the central bank’s balance sheet could have unintended consequences, including increasing the Fed’s footprint in financial markets.  Expert quote: “I think shrinking the balance sheet is the wrong objective, and many of the proposals to meet this objective would undermine bank resilience, impede money market functioning […]

Mortgage rates are driven by bonds and the bond market hoped to see more evidence of shift toward peace during the 2-day Trump/Xi meeting in China. As soon as Trump got back on the plane to head home, bonds began tanking (i.e. jumping to higher yields). When bond yields spike, mortgage rates follow, and today