2 At the margin, the GSEs finance their purchases of MBS by issuing equal amounts of debt, and thus the net supply to the market of housing-related debt is unchanged by GSE purchases. Thus, standard economic reasoning does not predict large effects from these purchases on the mortgage market.
That said, I am still fully engaged every day with important issues that are at the center of our economic recovery. It is gratifying to have such an opportunity and to work in this unique institution. The culture of the Federal Reserve is an interesting blend of government, academia, and business.