Fed Should Taper MBS Purchases Really Fast, Blinder Says

The video discusses the Federal Reserve's approach to tapering, particularly in relation to mortgage-backed securities (MBS). It questions the rationale behind the Fed's current $40 billion monthly MBS purchases given the rising housing market. The speaker presents two contradictory views: one advocating for rapid tapering of MBS purchases and another predicting the Fed's conservative, proportionate tapering approach. The discussion highlights the Fed's cautious nature and reflects on the historical context of quantitative easing (QE) in MBS since 2009, when the mortgage market was struggling.

What historical context does the speaker provide regarding the Federal Reserve's actions in 2009?

Why does the speaker believe the Federal Reserve's current approach to mortgage-backed securities is misguided?