Bar the Federal Reserve from favoring particular asset classes
What the document says“Reserve should be prohibited from picking winners and losers among asset classes.”
The chapter says this above all means limiting intervention in the mortgage-backed securities market, and also eliminating intervention in corporate and municipal debt markets. It calls the mortgage activities a paradigmatic case of what monetary policy should not do, noting home prices rose 42 percent between February 2020 and August 2022.
What the document actually says“Reserve should be prohibited from picking winners and losers among asset classes.”
The Fed should not be allowed to pick winners among assets.
The Fed buys some kinds of debt and not others. That helps those markets. The book says it should not choose favorites.
No action is recorded against this proposal. That is not evidence that none has been taken. See what the tracker does not yet cover.